Income
Which of the following BEST describes income?
A) Money given to a charity that helps others
B) Money received for completing a chore or task
C) Money received from a parent to pay for lunch
D) Money spent on new clothes and shoes for school
B) Money received for completing a chore or task
Which of the following is an expenditure?
A) Allowance from your parents
B) Buying an ice cream at lunch
C) Selling an old game to a friend
D) Getting paid for helping your neighbor
B) Buying an ice cream at lunch
What is the primary purpose of a personal budget?
A) To help people improve their education and skills
B) To help people determine how to train for their jobs
C) To help people live healthier lives and exercise more
D) To help people plan their spending and saving decisions
D) To help people plan their spending and saving decisions
Setting aside money from your income to use at a later time is called this.
Savings
Which of the following is the MOST financially responsible decision?
A) Tommy gets $50 for his birthday and spends $75 on Xbox games
B) Katrina sells her old helmet for $10 and gives $10 to charity
C) Sandy earns $100 tutoring, spends $5 on lunch, and banks $95
D) Stacy gets paid $25 for yard work and spends all $25 at the mall
C) Sandy earns $100 tutoring, spends $5 on lunch, and banks $95
Which of the following is an example of income?
A) Trading supplies with a friend
B) Money you get for working a job
C) Buying an ice cream at lunch today
D) Charging a lunch you will pay tomorrow
B) Money you get for working a job
Which item should Alex consider as an expenditure when planning his monthly personal budget?
A) How much TV he will watch this week
B) How many books he will read at school
C) How much ice cream he will buy at school
D) How many pencils he will trade with another student
C) How much ice cream he will buy at school
Why is it important to prepare and follow a budget?
A) A budget helps people find jobs for income
B) A budget helps people to determine educational decisions
C) A budget helps people choose the best doctor for the family
D) A budget helps people make responsible economic decisions
D) A budget helps people make responsible economic decisions
Jamar wants to be wealthy over time. Which of the following should he include in his personal budget right now to make this happen?
A) How he plans to spend money on himself and others
B) How he plans to save money over a long period of time
C) How he plans to increase his expenditures this coming year
D) How he plans to earn a lot of money over time to spend on others
B) How he plans to save money over a long period of time
The financial mistake Tommy makes when he receives $50 for his birthday but spends $75 on video games.
Overspending (or spending money he doesn't have / creating debt)?
If getting paid to help a neighbor with yard work is income, getting paid an allowance for weekly household chores is also an example of this
Income
Scenario: "I have a big social studies project due tomorrow, but my friends are playing soccer tonight at the park. I will play with them instead of working on my project." Choosing soccer over the project is an example of what economic concept?
A) Income
B) Expenditure
C) Opportunity Cost
D) Savings
C) Opportunity Cost
ucy gets a $5 weekly allowance for chores but runs out of money each week. Her mom tells her to set up a budget to show why she needs more. What should Lucy include?
A) A list of all the chores she has done
B) A list of her allowance and how much she spends
C) A list of how she spent her allowance in the past year
D) A list of everything she wants to buy with her savings
B) Lucy should make a list of her allowance and how much she spends
Setting aside money today instead of spending it on immediate wants allows you to make bigger purchases in this time frame.
the future
Stacy earns $25 helping in the yard, then spends $20 on a t-shirt and $5 on ice cream. Does Stacy have a balanced budget? Explain why or why not.
Yes, because her total expenditures ($25) equal her total income ($25), meaning she did not spend more than she earned.
Explain why earning $25 for helping a neighbor in the yard counts as income, but spending $20 of it on a t-shirt does not
Earning money for work brings money in (income), while buying a t-shirt sends money out (expenditure).
tacy receives $25 for yard work, buys a $20 t-shirt, and spends $5 on ice cream. What is her total expenditure?
$25 ($20 + $5 = $25).
What does it mean to have a balanced budget?
A) Income is equal to or more than expenditures
B) Expenditures are equally spread out in the budget
C) Income that is earned is less than expenditures
D) Donations to charity are included in expenditures
A) Income is equal to or more than the expenditures
Jamal earns $100 lifeguarding. He spends $5 on lunch and puts the remaining $95 in the bank. What dollar amount represents his savings, and why is this a smart choice?
$95 is saved. It is smart because he keeps his expenditures low ($5) and saves the majority for future needs or goals.
What happens when a person continually chooses to make expenditures that are higher than their income?
A) Their savings account grows automatically
B) Their budget becomes balanced
C) They run out of money and go into debt
D) They receive an increased allowance or salary
C) They run out of money and go into debt
What is the main difference between an income and an expenditure?
A) An income is money that is received; an expenditure is money that is spent
B) An expenditure is money that is saved; an income is money that is spent
C) An expenditure is money that is earned; an income is money that is received
D) An income is money that is given to another person; an expenditure is money that is received
An income is money that is received; an expenditure is money that is spent
When your total expenditures are larger than your total income, your budget is considered to be in this status.
Unbalanced
An unexpected expense—like a flat bicycle tire or a doctor's visit—is the primary reason people build this type of savings fund.
Emergency fund
Jordan wants to buy a $60 bicycle in 6 weeks. How much does he need to save each week from his income?
A) $5 per week
B) $6 per week
C) $10 per week
D) $12 per week
C) $10 per week ($60 divided by 6 weeks = $10)
Name two reasons why saving money is a more responsible economic decision than spending all of your income as soon as you get it.
It prepares you for unexpected emergencies, helps you buy larger/important items in the future, and prevents you from going into debt.