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Fin Lit Unit 3 Review

Total questions: 26

Worksheet time: 13mins

Name
Class
Date
1.

Before buying new shoes, Andre checked his __________ to make sure he had enough money to cover all his monthly expenses.

a)

Budget

b)

Income

c)

Paycheck

d)

Saving

2.

Rent, food, and gas are all examples of regular _______ you must pay for when managing your money.

a)

Expenses

b)

Want

c)

Gross pay

d)

Deduction

3.

Jessica’s job pays her $15 an hour. Her total pay before taxes and deductions is called her_______.

a)

Net pay

b)

Gross pay

c)

Income

d)

Pay period

4.

Money you earn from a job or receive from other sources is called _________.

a)

Income

b)

Budget

c)

Saving

d)

Discretionary spending

5.

Something essential for living, like water, shelter, or healthy food, is a _______.

a)

Want

b)

Need

c)

Expense

d)

Interest on debt

6.

Carlos’ _________is every two weeks, so he gets 26 paychecks each year.

a)

Gross pay

b)

Pay period

c)

Net pay

d)

Budget

7.

After working her shift, Olivia received her ___________, which showed how much she earned and what was taken out.

a)

Income

b)

Paycheck

c)

Saving

d)

Need

8.

The ______________ is a required payment to the U.S. government based on how much money you earn in a year.

a)

Discretionary spending

b)

Federal income tax

c)

Interest on debt

d)

Budget

9.

When Marcus looked at his pay stub, he noticed a _________ labeled “health insurance” that reduced the amount he took home.

a)

Gross pay

b)

Net pay

c)

Deduction

d)

Want

10.

Once all taxes and deductions are taken out, the money you actually take home is called your _______.

a)

Income

b)

Gross pay

c)

Net pay

d)

Expense

11.

A budget can show you how you’re spending your money.

a)

True

b)

False

12.

Usually, a budget does not include money put aside for savings.

a)

True

b)

False

13.

Only people who have checking accounts need a budget.

a)

True

b)

False

14.

A basic budget shows your income and your expenses.

a)

True

b)

False

15.

Groceries, rent, and transportation are common budget categories.

a)

True

b)

False

16.

Why is it important to know if something is a need or a want?

a)

It helps you prioritize spending and avoid overspending on non-essentials.

b)

It lets you earn more money from your employer.

c)

It makes taxes lower automatically.

d)

It guarantees you will never have expenses.

17.

Select all questions that can help you decide whether something is a need or a want.

a)

Can I still function in life without this?

b)

What do I really need?

c)

When does the sale for this product end?

d)

Will something bad happen if I don’t have this?

18.

When creating a budget, why is it important to use net pay instead of gross pay?

a)

Net pay reflects the money available after taxes and deductions.

b)

Gross pay already includes savings and expenses.

c)

Gross pay is always smaller than net pay.

d)

Using net pay increases your earnings.

19.

Match each percentage in the 50/30/20 rule of budgeting to the correct category.

a)

50%

1.

Needs

b)

30%

2.

Wants

c)

20%

3.

Saving

20.

What was Katherine’s GROSS PAY this pay period? Use the earnings statement to answer.

a)

$367.20

b)

$307.62

c)

$59.58

d)

$183.14

21.

What was Katherine’s NET PAY this pay period? Use the earnings statement to answer.

a)

$367.20

b)

$307.62

c)

$59.58

d)

$432.56

22.

How much did Katherine pay in STATE taxes this pay period? Use the earnings statement to answer.

a)

$21.85

b)

$9.64

c)

$22.77

d)

$5.32

23.

How much has Katherine had deducted from her paycheck this entire year so far? Use the earnings statement to answer.

a)

$5,844.81

b)

$6,976.80

c)

$1,131.99

d)

$367.20

24.

Who pays taxes in the U.S., and why do we pay them? Select all correct statements.

a)

Individuals and businesses pay taxes.

b)

Only adults with full-time jobs pay taxes.

c)

Taxes fund government services like schools, roads, and defense.

25.

Select the three main types of federal government spending.

a)

Mandatory Spending

b)

Discretionary Spending

c)

Interest on Debt

26.

Match the following

a)

Gross Pay

1.

The amount of money that you are paid before taxes are taken out.

b)

Net Pay

2.

The amount of money from your paycheck that you actually take home.

c)

Pay Period

3.

The amount of money you are paid for working a certain amount of time.

d)

Deductions

4.

The amount of money taken out of your paycheck for things like taxes and insurance.