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Unit 5 Earnings and Budgeting Quiz

Total questions: 45

Worksheet time: 23mins

Name
Class
Date
1.

Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses?

a)
Dining out at local restaurants
b)
Loan payment on a new car
c)
Expenses for new clothes
d)
Postponing a purchase for a big-screen TV
2.

If you are trying to substantially reduce the amount you spend on food, you should try...

a)
Cooking your own food at home for as many meals as possible
b)
Dining at restaurants more often so you don't waste water doing dishes
c)
Eating more snacks on the go and way fewer meals at home
d)
Drinking more coffee and soda so you are not as hungry for food
3.

Leila just graduated from college and is comparing a few different cities to move to. Which of these factors is the LEAST important thing for her to consider right now?

a)
Average rent for an apartment
b)
Food and grocery store options in the area
c)
Employment opportunities
d)
Average cost of Uber, Lyft, or taxi fare
4.

Greg is trying to decide whether he needs a car when he moves to the city. Which of the following would be a reason for Greg to get a car rather than use public transportation?

a)
There are several public transportation routes between Greg's apartment and work
b)
The cost of public transportation is less than Greg’s monthly car payment
c)
Greg’s company covers half the cost of his monthly public transportation pass
d)
Using public transportation, Greg’s commute to work one-way is two hours
5.

Isaiah has a summer internship at a technology company and is paid $3,000. After Federal and state taxes, Social Security, and Medicare are deducted, his take-home pay is $2,500. Which of the statements below is correct?

a)
His gross pay is $2,500 and net pay is $3,000
b)
His gross and net pay are $3,000
c)
His gross and net pay are $2,500
d)
His gross pay is $3,000 and net pay is $2,500
6.

You are interested in renting an apartment after graduating college. You meet with the landlord and complete the application. All of the following may need to be provided when you sign your lease EXCEPT

a)
Proof of employment
b)
A bank account
c)
First and last month's rent
d)
A security deposit
7.

You're considering moving into a 3 bedroom apartment with 2 roommates, rather than living on your own post-college. Which of your expenses would likely decrease by having roommates?

a)
Groceries and eating out
b)
Rent
c)
Cell phone bill
d)
Bedroom furniture
8.

Bryan is a great cook. He works as an independent contractor and books gigs cooking customers breakfast or dinner in their own homes on the app Cook For You. Who provides Bryan's health insurance and retirement plan?

a)
Each family he cooks for
b)
The owners of the Cook For You app
c)
The Google and Apple app stores
d)
Bryan has to fund them himself
9.

You overhear your cousin talking about the importance of creating and sticking to a budget. All of the following are good reasons to create and stick to a budget EXCEPT:

a)
A budget can help you identify any bad spending habits
b)
Using a budget can allow you to work towards your financial goals
c)
Having a budget can help you create an emergency fund
d)
Having a budget is a requirement for obtaining a mortgage
10.

Which one of these expenses most likely represents a VARIABLE cost in someone's budget?

a)
Electricity bill
b)
Rent
c)
Car insurance premium
d)
Student loan payment
11.

Now that Sanjana is done with college, she is trying to decide whether or not she should buy a new laptop for herself. She has made a preliminary list of questions she can ask herself to determine if the new laptop is a need or a want. Which of the following questions would you ELIMINATE from this list?

a)
Can I afford this laptop right now?
b)
Is this the right time to buy this laptop or will it likely be on sale later?
c)
What model laptop is trendy right now with people my age?
d)
How am I going to pay for this laptop? If I have to charge it or take out a loan, can I afford the monthly payments?
12.

Which of the following is TRUE about a lease agreement?

a)
A lease is an agreement between you and your roommates that you submit to the apartment owner.
b)
You never have to pay any fees when you sign a lease. If you do, that means it is a scam.
c)
A lease often has information about your prior housing experience; it's a record that the apartment owner can use to see if you are a good candidate
d)
A lease is an agreement that includes details about rent, apartment policies, vacating, etc.
13.

Janine is considering what auto costs she is going to have after buying a new car. She has budgeted enough money for the monthly auto loan payment, gas, and auto insurance. Has Janine factored in all of the costs associated with car ownership?

a)
Yes, these are the three costs she should expect to pay once she is a car owner
b)
No, she does not need to include the cost of auto insurance as it is included in her auto loan payment.
c)
No, she needs to factor in other costs such as maintenance, emergency repairs, etc.
d)
No, she does not need to include the cost of gas as it is covered under her auto insurance policy
14.

Sadie is a freelance social media specialist. Companies can hire her to improve their social media presence. Why is it particularly important that Sadie, and other freelancers like her, have an emergency fund?

a)
Freelancers charge a very low hourly rate, so Sadie probably doesn't get paid much
b)
Sadie doesn't have guaranteed work every day, so she needs money in case she goes a while between clients
c)
Sadie will need a large emergency fund in order to make her monthly insurance payments
d)
Sadie's job requires a lot of expensive specialty equipment that will always need replacing
15.

Why is it important to track expenses and income?

a)

There are no benefits to tracking expenses and income

b)

Tracking expenses and income only adds unnecessary stress

c)

It is not important to track expenses and income

d)

It is important to track expenses and income in order to make informed decisions, and plan for the future.

16.

What are some common categories to include in a personal budget?

a)

Housing, transportation, food, utilities, insurance, and debt payments.

b)

Travel, dining out, and hobbies

c)

Pet care, gardening, and home decor

d)

Jewelry, electronics, and luxury items

17.

How can setting financial goals help with budgeting?

a)

Setting financial goals has no impact on budgeting

b)

Budgeting is easier without any financial goals

c)

Setting financial goals helps prioritize spending and saving, which in turn helps with budgeting.

d)

Financial goals only create unnecessary stress and anxiety

18.

How often should you review and adjust your budget?

a)

You should review and adjust your budget only when you have a major life event

b)

You should review and adjust your budget every 5 years

c)

You should review and adjust your budget on a regular basis, such as monthly or quarterly, to ensure it aligns with your financial goals and current expenses.

d)

You should review and adjust your budget once a year

19.

What is the difference between fixed and variable expenses?

a)

Fixed expenses are only paid once a year, while variable expenses are paid monthly

b)

Variable expenses are only for luxury items, while fixed expenses are for necessities

c)

Fixed expenses are always higher than variable expenses

d)

Fixed expenses remain constant, while variable expenses can change from month to month.

20.

How can you increase your income to meet financial goals?

a)

Borrowing money from friends and family

b)

Winning the lottery and spend less money

c)

Spending less money and start buying lottery tickets

d)

Career advancement, skill acquisition, investments, or starting a side business.

21.

Money awarded to students based on achievement, does NOT have to be repaid

a)

Grant

b)

Loan

c)

Work Study

d)

Scholarship

22.

Money borrowed that has to be paid back with interest

a)

Grant

b)

Loan

c)

Work Study

d)

Scholarship

23.

Which tax is the money added to the cost of items or services?

a)

Payroll taxes

b)

Income taxes

c)

sales taxes

d)

property taxes

24.

What is progressive tax?

a)

Takes a larger percentage from lower-income groups that spend more money

b)

If someone dies, that person’s heirs may have to pay taxes on property left behind

c)

Takes a larger percentage from higher-income groups that make more money

d)

Is based on the portion of the estate received by an individual

25.

What are regressive taxes?

a)

Is based on the portion of the estate received by an individual

b)

Takes a larger percentage from higher-income groups that make more money

c)

Takes a larger percentage of income from lower-income groups that spend more money

d)

Are federal taxes on the wealth a person leaves behind

26.

What are Sales Taxes?

a)

Are taxes collected on most any product sold in a particular state

b)

Are federal taxes on the wealth a person leaves behind

c)

Are sales taxes on “luxury” items

d)

Takes a larger percentage of income from lower-income groups than high-income groups

27.

Employers pay 6.2% of their earnings to Social Security and Medicare (FICA)

a)

Progressive

b)

Regressive

c)

Proportional

d)

Transitional

28.

A Salary is...

a)

A person's weekly income

b)

A person's yearly income

c)

A person's monthly income

d)

A person's fortnightly income

29.

In the afternoons, you work at an aftercare program for elementary kids and get paid $15 per hour

a)

Hourly

b)

Salary

c)

Tips

d)

Contractual

30.

A benefit of this type of income is the potential to receive payment, like a commission, on a daily basis.

a)

Hourly

b)

Salary

c)

Tips

d)

Contractual

31.

What is Gross Income

a)

All money earned BEFORE deductions.

b)

All money earned AFTER deductions.

c)

Amount of money paid per hour.

d)

Amount of tips made per shift.

32.

What is Net Income

a)

All money earned BEFORE deductions.

b)

All money earned AFTER deductions.

c)

Any money in a cash register.

d)

Amount of tips made per shift.

33.
Taxes for the US government:
a)
state taxes
b)
federal taxes
c)
social security 
d)
medicare
34.

Punctuality

a)

to arrive at the correct time

b)

the process of organizing and planning how to divide your time between specific activities

c)

the ability to talk to customers and help them with their concerns.

d)

to make good choices that are honest and in the best interest of others.

35.

Time Management

a)

to make good choices that are honest, respectful, caring, and responsible.

b)

the process of organizing and planning how to divide your time between specific activities

c)

the ability to be on time to a job or for a class.

d)

the ability to talk to customers and help them with their concerns.

36.

Teamwork

a)

to make good choices that are in the best interest of others

b)

the process of working collaboratively with a group of people to achieve a goal

c)

the ability to arrive on time to a job or a class

d)

the ability to talk to customers and help them with their concerns.

37.

What is the relationship between education and income?

a)

The amount of education has no effect on income.

b)

More education leads to a higher income.

c)

More education leads to a high income with only a bachelor's degree.

d)

More education leads to a high income with a professional degree only. Doctors and lawyers have a professional degree,

38.

The money left over after all needs are paid is called _______________________.

a)

disposable income

b)

discretionary income

c)

savings

d)

emergency fund

39.

The money you earn BEFORE deductions is your

a)

net pay

b)

gross pay

c)

status

d)

total

40.

The total amount of income you take home after deductions is called your _______.

a)
Weekend income
b)
Gross income
c)
Net income
d)
 Taxable income
41.

When we budget or buy things what do we need to know?

a)

How much you will get paid next week.

b)

How much money you have

c)

Weekend plans

d)

The sizes for the kids' birthday gifts

42.

Income is

a)

money set aside for later use.

b)

items that use up the income.

c)

money earned from a job or a service.

d)

a plan for tracking income and expenses.

43.

Savings is

a)

money set aside for later use.

b)

items that use up the income.

c)

money earned from a job or a service.

d)

a plan for tracking income and expenses.

44.

Expenses are

a)

money set aside for later use.

b)

items that use up the income.

c)

money earned from a job or a service.

d)

a plan for tracking income and expenses.

45.

A budget is

a)

money set aside for later use.

b)

items that use up the income.

c)

money earned from a job or a service.

d)

a plan for tracking income and expenses.