WorksheetsPersonal Finance Vocab Quiz #2
Total questions: 15
Worksheet time: 8mins
Which term refers to money left after taxes are paid?
Earned Income
Disposable Income
Bonus
Compensation
What is a fixed expense?
A cost that changes each month
A cost that stays the same each month
Money received from working
Required money taken from pay
Which of the following is an example of unearned income?
Salary
Overtime pay
Interest from a savings account
Commission
What does a payroll statement show?
Only total earnings
Only deductions
Earnings and deductions for a pay period
Only taxes paid
Which term describes extra pay for working more than regular hours?
Bonus
Overtime
Commission
Compensation
A progressive tax system means:
Everyone pays the same rate
Higher income earners pay a higher rate
Only low income earners pay taxes
Taxes decrease as income increases
Which of the following is a voluntary deduction from pay?
Federal income tax
Social Security tax
Retirement savings contribution
Medicare tax
If you receive a bonus at work, what type of income is this?
Unearned income
Earned income
Disposable income
Fixed expense
Which financial goal would most likely take years to achieve?
Buying groceries for the week
Saving for a vacation next month
Saving for retirement
Paying a monthly phone bill
If your monthly rent is always $800, what type of expense is this?
Variable expense
Fixed expense
Unearned income
Voluntary deduction
A salesperson earns money based on the number of products sold. What is this type of earning called?
Commission
Bonus
Overtime
Compensation
If you want to buy a new laptop within the next two months, what type of financial goal is this?
Long-term financial goal
Short-term financial goal
Fixed expense
Mandatory deduction
You notice your electricity bill changes every month. What type of expense is this, and how might you plan for it in your budget?
Fixed expense; set aside the same amount each month
Variable expense; estimate based on previous bills and adjust as needed
Mandatory deduction; deduct from your paycheck
Unearned income; add to your savings
Imagine you are offered two jobs: one with a higher base salary but no commission, and one with a lower base salary plus commission on sales. How would you decide which job offers better compensation?
Choose the job with the higher base salary without considering commission
Compare total potential earnings, including base salary and possible commission, to determine overall compensation
Choose the job with commission only
Ignore compensation and choose based on location
Suppose you want to achieve a long-term financial goal, such as buying a house in five years. What steps should you take to plan for this goal?
Spend money as you wish and hope to save enough
Set a savings target, create a budget, and regularly review your progress toward the goal
Only save money when you receive a bonus
Wait until the last year to start saving
