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Build a Budget and Saving Startup Capital

Total questions: 27

Worksheet time: 14mins

Name
Class
Date
1.

Which of the following is an example of a tax you must pay?

a)

Bounced check

b)

Late fee

c)

Rental payment

d)

Social security

2.

Which of the following is an example of a tax?

a)

Line of credit

b)

Rental payment

c)

Cash payment

d)

Medicare

3.

What are taxes?

a)

Taxes are sources of income.

b)

Taxes are optional payments you make to state and local governments.

c)

Taxes are refunds you receive for overpayment.

d)

Taxes are mandatory payments you make to state and local governments.

4.

When is a budget considered to be balanced?

a)

When the amount you earn is equal or less than to the amount you spend.

b)

When the amount you spend is greater than the amount you earn.

c)

When the amount you save is less than the amount you spend.

d)

When the amount you spend is equal or less than the amount you earn.

5.

Which of the following budgets would be considered balanced?

a)

budget where the amount you earn is equal or less than to the amount you spend

b)

budget where the amount you spend is greater than the amount you earn

c)

budget where the amount you save is less than the amount you spend

d)

budget where the amount you spend is equal or less than the amount you earn

6.

Which of the following is a variable expense?

a)

Student loan payments

b)

Rental payments

c)

Health insurance

d)

Groceries

7.

Which of the following is NOT a fixed expense?

a)

Student loan payments

b)

Rental payments

c)

Health insurance

d)

Groceries

8.

Which of the following is a fixed expense?

a)

Clothing purchases

b)

Groceries

c)

Movie tickets

d)

Rental payments

9.

What is income?

a)

Income is payments you make to the federal government.

b)

Income is money you receive after paying taxes.

c)

Income is payments you make to the government to pay for roads, bridges, and schools.

d)

Income is money you earn, usually from working at a job.

10.

Typically, how do people earn income?

a)

Most people earn income by paying taxes.

b)

Most people earn income by working at a job.

c)

Most people earn income by saving a portion of their paycheck each month.

d)

Most people earn income by spending more than they earn each month.

11.

Which of the following is TRUE about income?

a)

Income is payment you make to the federal government.

b)

Income is money you receive after paying taxes.

12.

Which of the following would be an example of a NEED?

a)

A new pair of headphones

b)

Designer shoes

c)

Your favorite candy

d)

A warm winter coat

13.

Which of the following would NOT be considered a want?

a)

A new pair of headphones

b)

Designer shoes

c)

Your favorite candy

d)

A warm winter coat

14.

Which of the following would be an example of a WANT?

a)

A place to live

b)

Critical medicine

c)

A warm winter coat

d)

Movie tickets

15.

What are federal taxes?

a)

Federal taxes are payments you make to the state government where you live.

b)

Federal taxes are money you can earn from the US federal government.

c)

Federal taxes are money you earn from working at a job.

d)

Federal taxes are payments you make to the US federal government.

16.

Which of the following statements about federal taxes is TRUE?

a)

Federal taxes are payments you make to the state government where you live.

b)

Federal taxes are money you earn from the US federal government.

c)

Federal taxes are money you earn from working at a job.

d)

Federal taxes are payments you make to the US federal government.

17.

What is Medicare?

a)

Medicare is federal life insurance for people under age 65.

b)

Medicare is federal life insurance for people over age 65.

c)

Medicare is federal health insurance for people under age 65.

d)

Medicare is federal health insurance for people over age 65.

18.

When creating a personal budget, it is important to consider things you _____; ______ things you ______.

a)

want; before; need

b)

need; after; want

c)

need; at the same time as; want

d)

need; before; want

19.

What happens if you spend money on things you want before things you need?

a)

You'll be financially prepared for an unexpected emergency, like a broken leg or hospital stay.

b)

You are able to spend more on high-priced items, like higher education.

c)

Nothing happens, this is an appropriate practice.

d)

You limit your ability to save for high-priced items, like higher education.

20.

What is a variable expense?

a)

An expense that is the same during some months, and different during other months.

b)

An expense that is the same from month to month.

c)

An expense that is different from month to month.

d)

None of the above.

21.

What is a fixed expense?

a)

An expense that is the same during some months, and different during other months.

b)

An expense that typically does not change month to month.

c)

An expense that typically varies from month to month.

d)

None of the above.

22.

Which of the following statement is TRUE about variable expenses?

a)

The amount you spend on variable expenses do not change during certain months and do change during other months.

b)

The amount you spend on variable expenses changes from month to month.

c)

The amount you spend on variable expenses remain the same from month to month.

d)

None of the above are true.

23.

Which of the following statements is TRUE about startup capital?

a)

Startup capital is the money you invest in the form of supplies, marketing, legal services, and other investments to get your business up and running.

b)

Startup capital is the money spent in order to create a balanced budget for your personal finances.

c)

Both 1 and 2

d)

Neither 1 nor 2

24.

Which of the following statements about startup capital is FALSE?

a)

Startup capital is the money spend in order to create a balanced budget for your personal finances.

b)

Startup capital is the money you invest in the form of supplies, marketing, legal services, and other investments to get your business up and running.

c)

Both 1 and 2

d)

Neither 1 nor 2

25.

What is take home pay?

a)

The amount you earn each month in income minus what you save.

b)

The amount you earn each month in income minus what you spend.

c)

The amount left over from your monthly paycheck before deductions.

d)

The amount left over from your monthly paycheck after deductions.

26.

Which of the following statements about take home pay is TRUE?

a)

Take home pay is the amount you earn each month in income minus what you save.

b)

Take home pay is the amount you earn each month in income minus what you spend.

27.

Which of the following statements about take home pay is FALSE?

a)

Take home pay is the amount you earn each month in income minus what you save.

b)

Take home pay is the amount you earn each month in income minus what you spend.

c)

Take home pay is the amount left over from your monthly paycheck before deductions.

d)

All of the above.