Personal Financial Literacy

Front

What is a balanced budget?

Back

A balanced budget occurs when your expenses and income are equal.

Front

What are expenses?

Back

Expenses are payments for goods and services, or what you spend.

Front

What is gross income?

Back

Gross income is the money you receive before taxes.

Front

How much can JR save and still balance his budget?

Back

JR can save $11.01 and still balance his budget.

Front

What is the sales tax rate in Texas?

Back

The sales tax rate in Texas is 8%, or 0.08 times the purchase price.

Front

If a doll costs $150, what is the total amount paid including sales tax?

Back

The total amount paid for the doll is $162.

Front

What is net income?

Back

Net income is the money you receive after taxes are deducted.

Front

What is the difference between gross income and net income?

Back

Gross income is before taxes; net income is after taxes.

Front

What is a budget?

Back

A budget is a plan for managing income and expenses.

Front

Why is it important to have a budget?

Back

Having a budget helps you track your spending and save money.