Financial Literacy Check

Front

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.

Front

What is sales tax?

Back

Sales tax is a percentage of the sale price of goods and services that is collected by the seller and paid to the government.

Front

How do you calculate sales tax?

Back

To calculate sales tax, multiply the price of the item by the sales tax rate (as a decimal).

Front

What is simple interest?

Back

Simple interest is a method of calculating the interest charge on a loan based on the original principal amount.

Front

How do you calculate simple interest?

Back

Simple Interest = Principal x Rate x Time.

Front

What is the formula for calculating total cost including sales tax?

Back

Total Cost = Price + (Price x Sales Tax Rate).

Front

If an item costs $100 and the sales tax is 6%, what is the total cost?

Back

Total Cost = $100 + ($100 x 0.06) = $106.

Front

What does it mean to be under budget?

Back

Being under budget means spending less than the allocated budget amount.

Front

If Margie has a $50 budget and spends $48.60 after tax, how much under budget is she?

Back

Margie is $1.40 under budget.

Front

What is the importance of financial literacy?

Back

Financial literacy helps individuals make informed decisions about budgeting, saving, investing, and managing debt.