WorksheetsBudgeting
Total questions: 30
Worksheet time: 31mins
Which is an example of an income deduction?
an unexpected salary cut
wages lost due to illness
vacation budget
retirement savings
What effect would a tax increase have on income?
It would reduce gross income
It would not affect net income.
It would increase net income.
It would not affect gross income.
To change gross income, someone would need to
save more per month.
reduce deductions.
earn more money.
increase withholdings.
The amount of money you earn BEFORE payroll deductions is _____.
Take home pay
State Taxes
Net Pay
Gross Pay
What term is used to describe the income of an employee after all deductions are subtracted?
Annual salary
Gross pay
Net pay
Basic pay
Your salary after deductions is called
gross income
FDIC
FICA
Net Income
what a person earns after payroll taxes and other deductions are taken out; often referred to as take-home pay
Gross Income
Net Worth
Net Income
Positive Net Worth
Taxes get taken out of everyone's paycheck.
True
False
A short-term financial goal might include saving for
a down payment on a house.
a piece of furniture.
a child’s college fund.
one’s retirement.
What type of expense is an example of the cost to drive to and from work?
a variable expense.
a fixed expense.
a short-term expense.
a discretionary expense.
What is most likely the reason variable expenses should be planned after fixed expenses?
Fixed expenses are deducted from gross income, and variable expenses come from net income.
Variable expenses are a necessary part of fixed expenses but can only be calculated after fixed expenses.
Variable expenses are almost always higher than fixed expenses and need a greater budget
Fixed expenses are required and constant, but variable expenses are more flexible.
When a person invests income, he or she
spends no money in the short term and saves it all for the long term.
uses money in a way that will increase its value in the future.
spends income only on essential needs such as housing.
cuts out all discretionary spending for a set period to save money.
From what part of income should someone take savings?
what otherwise would be fixed expenses
gross income, before other deductions
what otherwise would be discretionary income
gross income, along with other deductions
A deduction is
gross income
money added to your income
net income
money taken out of your income
You make $9.00 an hour at your part-time job. You work 20 hours a week and your income tax rate is 20%. How much will be taken out of your paycheck each week?
$36.00
$144.00
$9.00
Which is the best way to achieve long-term financial goals?
Spend less on mandatory expenses.
Eliminate short-term financial goals.
Increase discretionary expenditures.
Save more money from net income.
When should fixed and variable monthly budgeted expenses first be planned?
at the end of each month
day by day during the month
at the start of each month
at least twice per month
In order to stay on track for long term financial goals, money for emergency spending should be taken first from your
saving account
discretionary money.
fixed expense money.
net income.
To create a balanced budget, one must make sure to
spend as little as possible.
pay credit card payments first.
spend less than or equal to income.
pay off debts first.
Why is net income lower than gross income?
fixed spending
budgeting
withholdings
discretionary spending
An expense that is constant each month is called a_________expense
Fixed
Variable
Uncertain
When creating a budget, you must track both your budgeted expenses and your___________ expenses.
actual
potential
likely
What do financial planning skills ultimately enable an individual to do?
to prepare for the future
to process their own tax returns
to stop spending
to become wealthier without saving money
What do financial planning skills ultimately enable an individual to do?
to prepare for the future
to process their own tax returns
to stop spending
to become wealthier without saving money
There are four steps in solving one’s personal financial challenges:
1. considering opportunity costs
2. assessing risks and returns
3. setting short- and long-term goals
4. assessing needs and wants
Which of these is the correct order of these steps?
2, 1, 3, 4
1, 2, 3, 4
4, 1, 2, 3
4, 2, 3, 1
When studying finance or economics, the cost of a decision is also known as a(n)
personal cost
financial cost
long-term cost
opportunity cost
What is included in an individual’s personal assets? Select three options.
number of dependents
money
career
property
investment
What are the main purposes of a budget? Select three options.
to record past income and spending
to take out a student loan from the bank
to plan future income and spending
to apply for a mortgage
to balance available resources and expenses
