Budgets
Income
Taxes
Buying a Car
Buying a House
100
Define the term "Budget"
A plan for how you will spend your money
100
What does the term, "income" mean? 
Money received for work
100
What is a "tax"? 
A percentage of your income that goes to the government. 
100
What is a "down payment"? (you can draw an illustration for this as well) 
A partial payment made at the time of purchase
100
What are some reasons to choose a smaller home instead of a larger home? 
Answers may vary 
200
Name the term that goes with this definition: 


"When your income is equal to your expenses" 

Balanced budget 
200
Name the term for this definition: 

"The money left over AFTER taxes and other expenses are taken out of your paycheck" 

Net income 
200
Do you think people should be taxed? Explain your answer. 
Answers may vary. 
200

What does it mean to "lease" a car? 

Paying to use the car for a predetermined term but never to own it.

200
What is interest? 
The cost of borrowing money 
300
Provide five examples of different categories that can be included in your budget 
Food, clothes, car payment, car insurance, utilities, entertainment, health care, etc. 
300
What is the term for this definition: 


"The amount of money your earn BEFORE taxes and other expenses are taken out of your paycheck" 

Gross income
300
Does each person pay the same exact dollar amount for taxes? explain. 
No. Each person's income is different, so they would pay different amounts in tax. 
300
What does it mean to "finance" a car? 
To borrow money to pay for that car 
300

Why is it better to pay off your house quickly? 

Because you will pay less money in interest 

400
At least what percentage of your budget should go towards savings? 
10%
400
What are some things that taxes are used to pay for? 
Roads, police, fire, health care, schools, etc. 
400
I make $30,000 in my paycheck. After taxes, I will only have $20,000 left. Which amount is my net income and which is my gross income? 
$30,000 (before taxes) is my gross and $20,000 is my net (after taxes) 
400
What is the difference between buying and leasing a car? 
If you buy a car, you own it. If you lease a car, you are borrowing the car. 
400
List two reasons why it might be better to rent a house and two reasons why it might be better to buy a house. 
Answers may vary 
500
If I make $2,000 a month and spend 15% on car expenses, how much money will I have left? 
$1,700
500
If I get paid $1,500 a WEEK, how much will I make in a MONTH? 
$6,000
500

If I make $30,000 this year, how much will I pay in taxes? (assume taxes are 30%) 

$21,000

500
Why does it cost more money to finance a car (pay over time) instead of paying it in full? 
If you finance a car, you pay more in interest. 
500
If I purchase a house for $600,000, what will my 35% down payment be? 
$210,000
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