WorksheetsForm 1 Income and Expenditure
Total questions: 38
Worksheet time: 20mins
What is income?
Money spent on goods and services
Money earned or received in exchange for labour
Money borrowed from a bank
Money saved for future use
What is expenditure?
Money used for savings
Money earned from a job
Money spent on goods and services
Money given as a gift
Which of the following is an example of expenditure?
Getting a weekly paycheck
Depositing money into a savings account
Buying groceries for the month
Receiving a bonus from your employer
If a person's income is higher than their expenditure, they will have:
A budget deficit
A surplus
A balanced budget
More debt
Why is it important to balance income and expenditure?
To ensure financial stability and avoid debt
To spend as much as possible
To only focus on earning income
To avoid paying taxes
Which of the following is an example of constant income?
A farmer selling crops in harvest season
A teacher earning a monthly salary
A musician getting paid for a concert
A store selling Christmas decorations
A seasonal income is:
Earned at regular intervals throughout the year
Earned during specific periods based on demand
A fixed amount of money received every month
The money left after taxes and expenses
Which of the following is an example of fluctuating income?
A person working for a fixed monthly salary
A taxi driver earning different amounts each day
A government worker receiving a steady paycheck
A person earning interest from a savings account
Which type of income would a freelance photographer most likely have?
Freelance photographer: someone who takes pictures for different people or companies without working for just one boss.
Constant
Seasonal
Fluctuating
Fixed
Which of the following would be an example of seasonal income?
Select all the correct responses.
A nurse working in a hospital
A tour guide during summer vacations
A bus driver transporting students daily
An accountant working in a bank
What is gross income?
Income after deductions like taxes and insurance
Income before any deductions
Income received only from investments
Income from part-time jobs
What is net income?
Total earnings before any deductions
Income earned from a second job
The amount of money left after compulsory deductions
Money received as a gift
Which of the following is an example of wages?
A teacher's monthly paycheck
A waiter being paid per hour worked
A company owner receiving profits
A person inheriting money from a relative
How does a salary differ from wages?
A salary is paid per task, while wages are paid monthly
A salary is a fixed amount that is paid monthly, while wages depend on the number of hours worked
A salary is received only by business owners
Wages are paid only to government employees
Sarah works as a gardener during the summer and does not earn money in the winter. What type of income does she have?
Constant
Seasonal
Fluctuating
Fixed
James has a steady paycheck but spends more than he earns every month. What will likely happen?
He will save money
He will build up debt
He will increase his net income
He will have extra funds
A worker earns $15 per hour. If they work 40 hours per week for four weeks, how much is their gross income before deductions?
$500
$600
$1,200
$2,400
If a person has a net income of $2,500 per month and their expenditure is $3,000, what financial issue are they facing?
A budget surplus
A financial crisis
A balanced budget
A budget deficit
A person earning a salary of $3,500 per month has rent ($1,200), food ($500), transportation ($300), and savings ($200). What is their remaining balance?
$1,300
$1,500
$1,800
$2,000
If David works two part-time jobs, earning different amounts each week, his income is:
Constant
Seasonal
Fluctuating
Fixed
Which of the following will increase net income?
Paying more taxes
Getting a raise from your employer
Spending more on entertainment
Increasing monthly expenses
A teenager earns money mowing lawns in the summer but does not work in winter. How should they plan their spending?
Spend all their money immediately
Save some for winter months
Avoid working in the summer
Rely on borrowing money
Maria gets paid a fixed salary every month. How should she manage her expenses?
Spend everything before the next paycheck
Save and budget carefully
Take out loans to spend more
Ignore tracking her income
If you are paid $10 per hour and work 50 hours in a week, how much will you earn before compulsory deductions?
$400
$500
$600
$700
Emma earns $500 per month but spends $550. What should she do to balance her budget?
Take out a loan every month
Find ways to increase her income or reduce expenses
Spend even more, since she is already in debt
Stop tracking her expenses
David has a stable salary but often forgets to budget. At the end of each month, he has no savings left. What should he do?
Keep spending as usual
Start tracking his income and expenses and ensure they balance
Take out a new credit card and go on shopping sprees weekly
Work fewer hours and still spend as usual
Lisa earns money by selling handmade crafts, but some months she makes more than others. How should she manage her finances?
Spend all her earnings immediately
Save extra money from high-earning months to cover low-earning months
Stop selling crafts and find a different job. Nobody is interested anyway!
Ignore her income fluctuations
Which of the following expenses is considered a need rather than a want?
Buying a new phone when the old one still works
Paying rent for a place to live
Buying luxury clothing
Going on a vacation
Tom earns a fixed monthly salary of $2,500. His expenses are as follows: Rent ($1,200), Food ($400), Transportation ($200), and Entertainment ($500). What is the best financial advice for Tom? Select all that apply.
Reduce entertainment expenses and save more
Increase his spending since he still has extra money
Take a loan to afford more luxuries
Stop paying rent
Engage in more low-cost or free entertainment activities.
Why is saving a portion of income important?
To have money for future needs and emergencies
To spend more on unnecessary items
To increase personal debt
To avoid paying taxes
Which of these is a smart saving habit?
Spending all income and saving whatever is left
Setting aside a fixed amount before spending
Only saving money when there is extra income
Avoiding savings completely
Which of these is a good way to reduce unnecessary spending?
Shopping without a budget
Buying only what is needed and maximizing on discounts and sales
Spending all money at once
Borrowing money to cover daily expenses
What is the best financial decision when receiving a large bonus?
Spend it all immediately
Save or invest a portion of it
Buy expensive luxury items
Ignore budgeting for it
Which financial plan is the most responsible?
Earning money and spending without keeping track
Setting a budget and sticking to it
Spending more than earnings and borrowing when needed
Not worrying about financial planning
Michael is a college student who gets a monthly allowance. What is the best way for him to manage his money?
Spend everything immediately and ask for more money later
Create a budget, prioritize essentials, and save a portion
Ignore his expenses and spend freely
Spend only on entertainment
Which of the following is the best way to handle unexpected expenses?
Have an emergency savings fund
Take out high-interest loans immediately
Spend without planning
Ignore the expense and hope it goes away
Why is it important to keep records of income and expenditure?
To track sources of income and spending
To avoid paying taxes
To hide financial information from others
To show off wealth
Maintianing proper expenditure practices means that savings and expenditures must always be balanced
True
False
