5th Grade Financial Literacy Check

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What is a budget?

Back

A budget is a plan that outlines expected income and expenses over a specific period, helping individuals manage their finances.

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What is gross income?

Back

Gross income is the total amount of money earned by an individual before any deductions, such as taxes or other expenses.

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What is net income?

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Net income is the amount of money an individual takes home after all deductions and taxes have been subtracted from gross income.

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What is sales tax?

Back

Sales tax is a tax imposed on the sale of goods and services, calculated as a percentage of the retail price.

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How can you balance a budget?

Back

To balance a budget, ensure that total income equals total expenses. This can be done by adjusting spending or increasing income.

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What is the purpose of a savings account?

Back

A savings account is used to save money while earning interest, providing a safe place to store funds for future needs.

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What does it mean to decrease expenses?

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Decreasing expenses means reducing the amount of money spent on various items or services to save money.

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What is an allowance?

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An allowance is a set amount of money given regularly, often to children, to manage their own spending.

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What is the difference between fixed and variable expenses?

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Fixed expenses remain the same each month (like rent), while variable expenses can change (like groceries or entertainment).

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What is a financial goal?

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A financial goal is a specific objective related to money, such as saving for a vacation or paying off debt.