Sales Tax & Percentages
How do you calculate sales tax?
Total Cost × Sales Tax Rate
What is the standard tip percentage for good service at a restaurant?
15-20%
True or False: It’s safe to use an ATM in a well-lit, public area.
True
What is the first step in creating a spending plan?
Know your income and expenses.
What is a fixed expense?
An expense that stays the same each month (e.g., rent)
If a shirt costs $20 and the sales tax rate is 8%, how much will you pay in total?
$21.60
If your dinner bill is $50 and you want to leave a 20% tip, how much should you tip?
$10
What should you do if someone suspicious is standing near you at an ATM?
Cancel your transaction and leave.
True or False: A spending plan is the same as a budget.
True! It's just another word for it.
What is a variable expense?
An expense that changes each month (e.g., groceries)
True or False: Sales tax rates are the same in every state.
False!
Name one profession where tipping is commonly expected.
Hairdresser, delivery driver, taxi driver, etc.
What is an ATM fee? How can you avoid a fee?
A fee associated with using an ATM. You can avoid a fee by using an ATM that is a part of your bank.
Why is it important to review and adjust your spending plan regularly?
To ensure it aligns with your financial goals and current circumstances
True or False: All wants are bad for your financial health.
False (moderation is key)!
What are taxes used for?
Funding things like: fire and police departments, fixing roads, libraries, funding schools, etc.
If your bill is $75 and you leave a 15% tip, what is your total payment?
$86.25
What else can ATM's be used for aside from taking out money?
Checking your balance, checking recent transactions, depositing checks (some)
Your __________ should not be more than your _________ if your budget is balanced.
Your expenses should not be more than your income if your budget is balanced.
What is an emergency fund, and why is it important in a spending plan?
Savings for unexpected expenses; it prevents financial crises
What does it mean to be tax exempt?
You don't pay taxes. Most nonprofits are like this!
Name two reasons why we tip.
People we tip are providing a service to us.
Most service workers don't make minimum wage and rely on tips.
What is a “skimming device,” and why is it dangerous?
A device thieves use to steal card information; it’s dangerous because it can lead to identity theft.
Name one tool that can help you create and track a spending plan.
Spreadsheet, financial app, physical budgeting sheet
How can a spending plan help you achieve long-term financial goals?
By ensuring you save and invest consistently