Budget & Income Quiz

Which of the following is a primary purpose of a budget?

• To determine the best use of a scarce resource

• To plan for short term and long term goals

• To track your expenses

• To avoid overdraft fees

What are the three components of a budget?

• Fixed, variable, and planned expenses

• Income, expenses, and savings

• Planned, unplanned, and variable expenses

What is the rule of thumb for saving a percentage of disposable income?

• 5%

• 10%

• 15%

• 20%

What is the difference between hourly wages and salary?

• Hourly wages are paid per hour worked, salary is a fixed payment

• Hourly wages are for self-employed, salary is for employees

• Hourly wages have consistent pay, salary has variable pay

• Hourly wages are paid monthly, salary is paid hourly

Susie lost power for 2 weeks during hurricane Helene. She knows this will make her electricity bill lower. This is because her electric bill is a

• Payroll expense

• Variable expense

• FICA tax

• Fixed expense

Joey makes $10 per hour at his job at Chick-fil-A. He worked 20 hours last week earning $200. This would be his

• Gross income

• Net income

• FICA income

A server at Outback Steak House is an example of an independent contractor.

• True

• False

Based on the pay stub, what type of income is this person receiving?

• Salary

• Independent Contractor

• Hourly

• Capital Gains

Tips, wages, gifts of money, and yearly salaries are ALL examples of income.

• True

• False

Your take-home pay is also known as

• Net pay

• Gross pay

• Payroll Income