Income, Taxes, and Budgets
Grade 5 - Social Studies - Building Confidence
A store adds a small extra charge when you buy something, which helps pay for shared services. What is this called?
- income tax
- sales tax
- property tax
Priya earns $600 before any taxes are taken out. What is this amount called?
- gross income
- net income
- interest
Someone sends money straight from one bank account to another online. Which payment method is this?
- an electronic transfer
- a debit card
- a check
Noah checks his bank statement each month. Why does keeping financial records like this help?
- it guesses how much money is left
- it shows what was earned and spent
- it makes a budget unnecessary
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
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
- interest
- income tax
Priya's gross income is $600. After $100 is taken out for taxes, what is Priya's net income?
- $499
- $500
- $502
Someone pays with a card that borrows money to be paid back later. Which payment method is this?
- a credit card
- a debit card
- a check
Leo saves old bills to compare month to month. Why does keeping financial records like this help?
- it makes a budget unnecessary
- it shows what was earned and spent
- it lets bank statements go unchecked
The Chen family earns $1800 and spends $2000 this month. Is this budget balanced?
- it cannot be told from these numbers
- no, spending is higher than income
- no, income is higher than spending