Budget & Income Quick Check

Which of the following is a PRIMARY purpose for MAKING a budget?

• To determine the best use of a scarce resource

• To support circular flow in an economy

• To track your needs and wants

• 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%

Anika works at a coffee shop and is paid for each hour she works, while Noah has an office job where he receives a fixed amount every month regardless of hours worked. What is the difference between how Anika and Noah are paid?

• 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

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

You pay Netflix $14.99 a month for streaming services. This is a ________ expense.

• Fixed

• Variable

• Combination

You decide you want to get an "I heart Economics" tattoo. You pay Ben at Winnersville Tattoo $325 to design and give you this tattoo. What type of income is this for Ben?

• Independent contractor

• Salary

• Federal