Understanding Taxes and Budgeting

What is income tax?

• A tax on the sale of goods and services.

• A tax on the money people earn from working.

• A tax on property ownership.

• A tax deducted from an employee's paycheck.

Tags

TEKS.MATH.5.10A

Which of the following best describes payroll tax?

• A tax on the sale of goods and services.

• A tax on the money people earn from working.

• A tax deducted from an employee's paycheck.

• A tax on property ownership.

Tags

TEKS.MATH.5.10A

What is the difference between gross income and net income?

• Gross income is after taxes, net income is before taxes.

• Gross income is before taxes, net income is after taxes.

• Gross income includes only salary, net income includes all earnings.

• Gross income is the same as net income.

Tags

TEKS.MATH.5.10B

• $600

• $500

• $400

• $100

Tags

TEKS.MATH.5.10B

Which of the following is a method for keeping financial records?

• Spending without tracking.

• Using a notebook to record income and expenses.

• Ignoring all receipts.

• Only remembering large expenses.

Tags

TEKS.MATH.5.10D

Why is it important to keep financial records?

• To spend more money.

• To track income and expenses accurately.

• To avoid paying taxes.

• To confuse accountants.

Tags

TEKS.MATH.5.10D

What action can be taken if expenses exceed income?

• Increase spending.

• Ignore the problem.

• Reduce unnecessary expenses.

• Borrow more money without a plan.

Tags

TEKS.MATH.5.10E

• Spend more on entertainment.

• Increase your income or reduce expenses.

• Ignore the difference.

• Buy more luxury items.

Tags

TEKS.MATH.5.10E

How can you balance a simple budget?

• Ensure expenses are greater than income.

• Ensure income equals expenses.

• Spend without tracking.

• Only save money without spending.

Tags

TEKS.MATH.5.10F

• Spend it on something else immediately.

• Save it or use it for future grocery expenses.

• Ignore it.

• Give it away without planning.

Tags

TEKS.MATH.5.10F