WorksheetsUnit 2 Managing Finances and Budgeting
Total questions: 46
Worksheet time: 11mins
If Lanten’s gross pay is $1,800 this pay period and the Medicare tax is 1.45%, how much Medicare tax will be deducted from Lanten’s paycheck?
$26.10
$261.00
$2.61
$111.60
If Maddy’s gross pay is $500 this pay period and the Social Security tax is 6.2%, how much Social Security tax will be deducted from Maddy’s paycheck?
$310.00
$7.25
$72.50
$31.00
Reese’s gross pay is $1,900.00. All of his deductions total $550. What is his net pay?
$2,450.00
$1,350.00
$1,900.00
More information is needed to calculate net pay.
The total money you get to “take home” from your paycheck after taxes and deductions is _____.
gross pay
federal income tax
state income tax
net pay
The form employers use to determine how much tax to deduct from your paycheck is _____.
W2
W4
I9
W9
If Chase worked 10 hours last week at $7.25 per hour, what is his gross pay?
$725.00
$43.00
$72.50
More information is needed to calculate gross pay
The ____ is the form employers use to inform you of the amount of money deducted from your paycheck in a given year.
W4
I9
w2
w9
The total money earned in your paycheck before taxes and deductions is _____.
gross pay
net pay
federal income tax
state income tax
The following statement is a SMART Goal: "I want to be able to attend college."
True
False
The following statement is a SMART goal: “I want to make all As.”
True
False
Which of the following is an example of a long-term goal?
Emery wants to plan for his retirement.
Emery wants to save for a car when he turns 16.
Emery wants to open a savings account.
Emery wants to save $100 for a trip this summer.
The following statement is a SMART goal: “In one year, I want to save $6,000 to purchase a car.”
True
False
The A in SMART goals refers to making goals that are
additional
all
attainable
astute
Which of the following is not usually considered a need?
brand clothing
mortgage
groceries
gasoline
Which of the following is not usually considered a want?
entertainmet
car payment
cable tv
rent
The first step to financial success is creating and sticking to a budget.
True
False
Heidi’s car recently broke down. The repair cost her $725. The money Heidi paid to repair her car would be considered a…
variable expense
periodic expense
fixed expense
want
A mortgage payment is an example of a ________
fixed expense
variable expense
periodic expense
want
Brand shoes are considered a need.
True
False
Anita’s power bill was $75 in September and $88 in October. A power bill is an example of a…
Fixed expense
Variable expense
periodic expense
want
If you discover that you have a budget deficit, how should you fix the problem?
increase inflows
increase inflows and decrease outflows
decrease outflows
it’s not really a big problem. Maybe it will fix itself.
What is meant by a balanced budget?
inflows are greater than outflows
inflows are less than outflows
inflows are equal to income
inflows are greater than or equal to outflows.
A budget deficit occurs when
inflows are greater than outflows
inflows are equal to outflows
inflows are less than outflows
inflows are equal to income
According to financial experts, what portion of your income should be saved?
20%
30%
40%
50%
Which of the following is an example of a short-term goal?
Katie wants to save for college.
Katie wants to save $100 for a trip this summer.
Katie wants to save to buy a house.
Katie wants to plan for her retirement.
According to financial experts, what portion of your income should be devoted to needs?
20%
30%
40%
50%
According to financial experts, what portion of your income should be devoted to wants?
20%
30%
40%
50%
The R in SMART goals refers to making goals that are
responsible
resourceful
relevant
redundant
The M in SMART goals refers to making goals that are
medium-term
measurable
mighty
marvelous
The T in SMART goals refers to making goals that are
timely
taxes
thorough
third
The S in SMART goals refers to making goals that are
short-term
school
sharp
specific
Money earned from the sale of investments is known as
passive income
earned income
working income
portflio income
Which of the following is considered passive income?
your paycheck
profit from selling a house
rent received from a rental property
profit from selling a stock
Which of the following is not a common way for teens to earn income?
a part-time job
passive income
an allowance
holiday/birthday money
Which of the following considered as portfolio income?
profit from selling a house
your paycheck
rent received from a rental property
a royalty from a book you authored.
Money earned regularly with little or no effort is known as
earned income
portfolio income
passive income
working income
Money earned from working is
passive income
earned income
portfolio income
working income
Generally speaking the ___________ quality, the ___________ the price.
higher; higher
higher; lower
lower; higher
there is no relationship between price and quality.
Darion’s assets total $50,000 and his liabilities total $40,000. What is his net worth?
$10,000
$90,000
80%
20%
Dawn has a retirement account. Which of the following best describes this account?
asset
liability
net worth
budget
Your ____ ____ is your assets minus your liabilities.
net worth
asset
liability
budget
Which of the following is NOT a liability?
Ian owns a rental house that is worth $240,000.
The mortgage payment on Ian’s rental house is $1,200 per month.
Jamie owes $30,000 in student loans.
Kristi has 3 credit cards and owes $3,500 on her credit cards.
Which of the following is not an asset?
Jane owes $10,000 on her Jeep.
Jill has $25,000 in her savings account.
Jane’s Jeep is currently worth $20,000.
Jane’s house is worth $120,000.
Microsoft Excel and Google Spreadsheet are software that can be used to create a budget.
True
False
In a budget, a(n) ____ is anything you owe.
liability
asset
net worth
budget
A(n) ____ is anything of value that you own.
asset
liability
net worth
budget
