Worksheets2 Fast 2 Curious: Understand Budget & Income
Total questions: 21
Worksheet time: 7mins
The cost of living impacts financial choices by:
Increasing the need for budgeting and saving
Decreasing the importance of financial planning
Having no effect on financial decisions
Making luxury spending more feasible
What are the two types of expenses?
Fixed and Variable
Direct and Indirect
Short-term and Long-term
Capital and Revenue
What is the definition of 'Cost of Living'?
The amount of money needed to sustain a certain standard of living
The total cost of owning a car
The expenses related to traveling abroad
The price of luxury goods
Which of the following is a key factor of cost of living?
Education
Housing
Entertainment
Travel
Fill in the blank: _______ includes rent or mortgage payments.
Housing expenses
Utilities
Groceries
Transportation
Which of the following is considered a 'Utility' expense?
Internet
Clothing
Entertainment
Travel
What factors contribute to the higher cost of groceries and dining in California?
The overall cost of living is elevated in California.
California has an abundance of grocery stores.
The state enforces a lower minimum wage.
Weather conditions in California impact food pricing.
A budget is:
A plan for saving and spending money
A type of investment
A financial institution
A loan agreement
Why is it important to have a budget?
To manage finances effectively
To increase expenses
To avoid saving money
To spend without limits
The key components of a budget are:
Income, Expenses, Savings
Assets, Liabilities, Equity
Revenue, Costs, Profit
Cash, Investments, Loans
A student using the Envelope System allocates $50 for dining out. If they spend it all in the first week, what must they do?
Charge it to their credit card
Wait until the next month to dine out again
Borrow from a friend
Ask for an advance on their allowance
How much should you aim to save for an emergency fund?
3 to 6 months' worth of expenses
1 year of salary
$10,000
No specific amount
What are taxes?
Taxes are mandatory payments to the government that help fund public services like schools, roads, and emergency services.
Taxes are voluntary donations to the government for public services.
Taxes are payments made to private companies for services.
Taxes are optional contributions to local charities.
What is Gross Pay?
Your total earnings before any deductions.
The amount you take home after deductions.
Federal & State Income Tax.
Health Insurance Contributions.
Which of the following is NOT a factor in determining the cost of living?
Housing prices
Entertainment options
Government policies
Climate conditions
What is the difference between income and expenses?
There is no difference
Income is money you earn, and expenses are money you spend
Expenses are money you earn, and income is money you spend
Income is for adults, and expenses are for kids
Which of the following is a type of tax that is taken directly from your paycheck to fund Social Security and Medicare?
Sales Tax
Payroll Tax (FICA)
Property Tax
Gross Tax
What is the difference between gross pay and net pay?
Gross pay is after deductions, while net pay is before deductions.
Gross pay includes bonuses, while net pay is only the base salary.
Gross pay is your total earnings before deductions, while net pay is what you take home after deductions.
Gross pay is the amount after taxes are deducted, and net pay includes all taxes.
Which form tells your employer how much tax to withhold from your paycheck?
W-2 Form
1040 Form
W-4 Form
1099 Form
Why is it important to understand taxes and how they affect your paycheck?
So you can maximize deductions for social security.
To help with financial planning and ensure you don’t owe money unexpectedly.
To know how much to invest in retirement plans.
To calculate housing expenses more effectively.
What date are federal income taxes typically due each year?
