Understanding Budgeting and Expenses

What is the definition of a budget?

• A plan for managing income and expenses

• A list of all your wants

• A record of past expenses

• A method to increase income

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DOK Level 1: Recall

Which of the following is considered a fixed expense?

• Groceries

• Rent

• Entertainment

• Clothing

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DOK Level 1: Recall

Identify the difference between a want and a need.

• A want is essential for survival, a need is not

• A need is essential for survival, a want is not

• Both are essential for survival

• Neither is essential for survival

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DOK Level 2: Skill/Concept

You earn $500 each week, but spend $200 on needs and $100 on wants.

How much money do you have remaining each week?

• $100

• $200

• $300

• $400

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DOK Level 2: Skill/Concept

Why is identifying fixed versus variable expenses is important in budgeting?

• It helps in identifying unnecessary expenses

• It allows for better financial planning and management

• It ensures all expenses are paid on time

• It increases overall income

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DOK Level 3: Strategic Thinking

A store offers a 20% discount on a $50 item. What is the price after the discount?

• $30

• $35

• $40

• $45

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DOK Level 2: Skill/Concept

Calculate the total cost of an item priced at $80 with a sales tax of 8%.

• $86.40

• $88.00

• $90.00

• $92.00

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DOK Level 2: Skill/Concept

How does paying taxes impact personal income and budgeting?

• Taxes reduce income, affecting how much can be saved or spent

• Taxes increase income, allowing for more spending

• Taxes have no impact on personal income

• Taxes only affect business income, not personal income

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DOK Level 3: Strategic Thinking