Income, Taxes, and Budgets
Grade 5 - Social Studies - Challenge Me
A family pays a yearly amount based on the value of their home, which helps pay for schools and roads. What is this called?
- interest
- sales tax
- property tax
- income tax
Priya earns $600 before any taxes are taken out. What is this amount called?
- net income
- profit
- interest
- gross income
Someone writes a paper check to pay a store. Which payment method is this?
- an electronic transfer
- a credit card
- a check
- a debit card
Noah checks his bank statement each month. Why does keeping financial records like this help?
- it shows what was earned and spent
- it guesses how much money is left
- it makes a budget unnecessary
- it lets bank statements go unchecked
The Chen family earns $1800 this month but spends $2000. What is one action that could help balance the budget?
- add more monthly expenses
- spend even more than before
- cut back on some spending
- ignore the budget completely
Part of a worker's pay is set aside to help pay for shared things like roads and schools. What is this called?
- property tax
- income tax
- sales tax
- interest
Elena's gross income is $700. After $120 is taken out for taxes, what is Elena's net income?
- $578
- $580
- $583
- $85
Someone pays with a card that borrows money to be paid back later. Which payment method is this?
- a credit card
- a check
- a debit card
- an electronic transfer
Leo saves old bills to compare month to month. Why does keeping financial records like this help?
- it shows what was earned and spent
- it makes a budget unnecessary
- it guesses how much money is left
- it lets bank statements go unchecked
The Osei family earns $2200 and spends $1900 this month. Is this budget balanced?
- yes, income equals spending
- it cannot be told from these numbers
- no, spending is higher than income
- no, income is higher than spending