WorksheetsFinancial Literacy
Total questions: 23
Worksheet time: 12mins
What does the term "income" refer to?
A.
Money that is borrowed from a bank
B.
Money that is earned from working
What does the term "deduction" refer to?
A.
Money that is taken out of your gross income
B.
Money that is added to your gross income
What does "gross income" refer to?
A.
The amount of money earned after taxes
B.
The amount of money earned before taxes
What is "net income" ?
A.
The total amount of money spent
B.
Money made after deductions are taken out
What is the gross income in the example of net pay calculation?
$2,418
$39,000
How much is deducted for Social Security tax in the example provided?
$2,418
$1,800
What is the net income after all deductions in the example of net pay calculation?
$30,832.50
$39,000
What is income tax?
A.
Money paid to the government based on money you earn
B.
A fee for using public transportation
What is payroll tax?
C) A tax paid directly to the government by the employee
B) Money that your job holds from your paycheck
Which taxes are included in payroll tax?
A.
Social Security and Medicare taxes (FICA)
B.
Income and property taxes
What is property tax?
A.
A tax paid on property such as land or houses
B.
A tax on income earned from renting property
What is a budget?
A.
A list of people in an organization
B.
An organized plan for spending and saving money
What is the total monthly income shown in the budget?
$5,000
$2,200
How much is allocated for 'Food' in the monthly expenses?
$500
$650
According to the budget, how much is spent on 'Housing'?
$1,250
$300
What does the term "deposit" refer to in banking?
Taking a loan from the bank
Putting money into your bank account
What action does "withdrawal" mean?
A.
Taking money OUT of your bank account
B.
Paying a BILL with your bank account
What is saving?
A.
Money you put aside for an emergency
B.
Borrowing money from a bank
What does spending mean?
When you pay for things you want or need
Investing money in stocks
What does the word "donating" mean?
A.
Lending money to friends
B.
Giving money to charity
What are fixed expenses?
A.
Regular payments that DO NOT CHANGE from month to month
B.
Costs that CHANGE depending on usage and choices
Which of the following is an example of a variable expense?
A.
Grocery shopping
B.
Car payment
What is the definition of variable expenses?
A.
Costs that remain the SAME every month
B.
Payments that CHANGE based on usage and preferences
