7th Grade Financial Literacy

Front

What are fixed expenses?

Back

Fixed expenses are costs that do not change from month to month, such as rent or car payments.

Front

What are variable expenses?

Back

Variable expenses are costs that can change from month to month, such as groceries and gas.

Front

How do you calculate the final price of an item with sales tax?

Back

To calculate the final price, multiply the item's price by the sales tax rate, then add that amount to the original price.

Front

What is gross pay?

Back

Gross pay is the total amount of money earned before any taxes or deductions are taken out.

Front

What is net pay?

Back

Net pay is the amount of money received after all deductions, including taxes, have been taken out.

Front

What is income tax?

Back

Income tax is a percentage of an individual's earnings that is paid to the government.

Front

If an item costs $990 and has a sales tax of 9%, what is the final price?

Back

$1,079.10

Front

If Noah earns $92,000 and pays 22% in income tax, how much tax does he pay?

Back

$20,240

Front

What is the difference between gross pay and net pay?

Back

Gross pay is the total earnings before deductions, while net pay is what remains after deductions.

Front

What is a budget?

Back

A budget is a plan that outlines expected income and expenses over a specific period.