Teacher Answer Key - Home Page of the Cougars!

Teacher Answer Key
Topic Type Page
What’s A Budget / Your Income . . True or False . . . . . . . . . . . . . . 1
Your Income . . . . . . . . . . . . . . . . . Matching . . . . . . . . . . . . . . . . . 2
Your Taxes . . . . . . . . . . . . . . . . . . True or False and Listing . . . . 3
Your Spending . . . . . . . . . . . . . . . Multiple Choice . . . . . . . . . . . . 4
The Basics . . . . . . . . . . . . . . . . . . . True or False . . . . . . . . . . . . . . 5
The Unexpected / Net Worth . . . . Multiple Choice . . . . . . . . . . . . 6
Budgeting . . . . . . . . . . . . . . . . . . . Math Problems . . . . . . . . . . . . 7-8

Budgeting What’s A Budget? / Your Income 1
1) Circle True or False after each statement.
1.
A budget will help you learn to live on your income . . . . . . . . . . . . . . . . . . .
True
False
2.
3
A budget will guarantee that you always have enough income to live on . .
A variable source of income is easier to budget than a fixed source . . . . . . .
True False
True False
4.
A budget will help you be independent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
True
False
5.
A salary, commisions and gifts are all fixed sources of income . . . . . . . . . . .
True False
6.
One goal of budgeting is to smooth out the bumps in your income . . . . . . .
True
False
7.
8.
You can not control when your bills are due . . . . . . . . . . . . . . . . . . . . . . . . . .
Royalties and profits are both fixed sources of income . . . . . . . . . . . . . . . . .
True False
True False
9.
A biweekly paycheck comes every two weeks . . . . . . . . . . . . . . . . . . . . . . . . .
True
False
10.
It is important not only to know how much you’re paid, but when you’re
paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
True
False
11.
Captial gains and bonuses are variable sources of income . . . . . . . . . . . . . .
True
False
12.
The three most common pay periods are bimonthly, monthly and biweekly
True False
13.
Your budget needs to match your spending to when you receive your income
True
False
14.
Tips, interest and dividends are all fixed sources of income . . . . . . . . . . . . .
True False
15.
It would not be uncommon for a high school student to receive wages, gifts
and interest as income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
True
False
16.
Most workers’ income includes either wages or a salary . . . . . . . . . . . . . . . .
True
False
17.
18.
It would not be uncommon for a high school student to receive a salary,
profits and dividends as income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In general, all income can be defined as payment for work . . . . . . . . . . . . .
True False
True False
19.
A budget is a spending plan to control the flow of your money . . . . . . . . . . .
True
False
20.
A budget will help you reach your financial goals . . . . . . . . . . . . . . . . . . . . .
True
False
Name: ____________________________________
Class: _______________________ Period: ____

Budgeting Your Income 2
1) Listed below are 21 types of income. Match each type of income with the proper definition.
1. Alimony
2. Allowance
3. Annuity
4. Bonus
5. Capital Gain
6. Child Support
7. Commission
8. Disability Income
9. Dividend
10. Gift
11. Hourly Wage
12. Interest
13. Pension
14. Profit
15. Rent
16. Royalties
17. Salary
18. Social Security
19. Tip
20. Trust Fund
21. Unemployment Benefits
11
9
16
2
18
17
21
19
6
7
8
10
1
5
13
14
4
3
20
15
12
A pay scale defined as a specific amount per time period worked.
A portion of a corporation's distributed profits normally measured as an amount per share.
A payment for rights to property based on a percentage of the revenue generated by it.
An amount of money given periodically to an individual for performing little or no work.
Government payments to elderly, unemployed and disabled persons financed by contributions from
employees and employers.
A fixed, yearly compensation paid to a person for regular work or services.
Regular payments from state funds of a certain amount of money to qualified workers without jobs.
A gratuity received for service.
Payments made by one party for care and upbringing of a child after divorce.
A sum of money paid to an agent or salesperson.
Transfer payments made to individuals who are seriously or permanently disabled.
Money or property given freely to another.
A legally required allowance for maintenance paid by one spouse to another upon separation or divorce.
An increase in the value of an asset.
Regular income payments made to an employee after they retire.
The net amount earned after deducting the costs of doing business.
A payment in addition to the normal wage or salary as a reward for work well done.
An investment plan providing guaranteed retirement income.
An amount of money or property administered by an individual or organization for the benefit of another
individual or organization.
Payment for the use of real property.
The price paid for the use of money over time.
Name: ____________________________________
Class: _______________________ Period: ____

Budgeting Your Taxes 3
1) Circle True or False after each statement.
1.
What you make is not what you get to keep . . . . . . . . . . . . . . . . . . . . . . . . . .
True
False
2.
Gross pay minus deductions equals take home pay . . . . . . . . . . . . . . . . . . . .
True
False
3
4.
5.
6.
Everyone has four tax deductions including federal, state and local income
tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net pay minus deductions equals take home pay . . . . . . . . . . . . . . . . . . . . .
Most people’s tax deductions include federal income tax, social security tax
and medicare tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Withholding is the sum of the taxes deducted from your paycheck . . . . . . .
True False
True False
True False
True False
7.
Gross pay minus deductions equals net pay . . . . . . . . . . . . . . . . . . . . . . . . . .
True
False
8.
Tax Freedom Day changes over the years . . . . . . . . . . . . . . . . . . . . . . . . . . .
True
False
9.
Most of your take home pay will be used to pay bills . . . . . . . . . . . . . . . . . .
True
False
10.
Tax Freedom day is typically in February . . . . . . . . . . . . . . . . . . . . . . . . . . .
True False
2) Make a list of all the taxes you and your family pay each year.
1. _____________________________________________________________________________________
2. _____________________________________________________________________________________
3. _____________________________________________________________________________________
4. _____________________________________________________________________________________
5. _____________________________________________________________________________________
6. _____________________________________________________________________________________
7. _____________________________________________________________________________________
8. _____________________________________________________________________________________
9. _____________________________________________________________________________________
10. _____________________________________________________________________________________
11. _____________________________________________________________________________________
12. _____________________________________________________________________________________
13. _____________________________________________________________________________________
Name: ____________________________________
Class: _______________________ Period: ____

Budgeting Your Spending 4
1) Read each of the following statements and place a check
mark below the type of expense or spending it represents.
1) Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ̌
2) Car Repair . . . . . . . . . . . . . . . . . . . . . . . . . . ̌
3) Groceries . . . . . . . . . . . . . . . . . . . . . . . . . . . ̌
4) Car Payment . . . . . . . . . . . . . . . . . . . . . . . . ̌
5) Hospital Bill . . . . . . . . . . . . . . . . . . . . . . . . . ̌
6) Concert Tickets . . . . . . . . . . . . . . . . . . . . . . ̌
7) Clothing . . . . . . . . . . . . . . . . . . . . . . . . . . . . ̌ ̌
8) Car Maintenance . . . . . . . . . . . . . . . . . . . . . ̌
9) Gifts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ̌ ̌
10) Utility Bills . . . . . . . . . . . . . . . . . . . . . . . . . ̌
11) Mortgage . . . . . . . . . . . . . . . . . . . . . . . . . . . . ̌
12) Insurance Premiums . . . . . . . . . . . . . . . . . . ̌ ̌
13) Vacation Travel Expenses . . . . . . . . . . . . . . ̌
14) Gasoline . . . . . . . . . . . . . . . . . . . . . . . . . . . . ̌
15) Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ̌
16) Credit Card Payments . . . . . . . . . . . . . . . . . ̌
17) Home Furnishings . . . . . . . . . . . . . . . . . . . . ̌ ̌
18) Child Care Expenses . . . . . . . . . . . . . . . . . . ̌
19) Books, CDs and DVDs . . . . . . . . . . . . . . . . . ̌
20) Eating Out . . . . . . . . . . . . . . . . . . . . . . . . . . ̌ ̌
Discretionary Spending
Unexpected Expense
Periodic Expense
Variable Expense
Fixed Expense
Name: ____________________________________
Class: _______________________ Period: ____

Budgeting The Basics 5
1) Circle True or False after each statement.
1.
Avoid impulse buying. Decide if you really want it or need it . . . . . . . . . . . .
True
False
2.
Convenience stores are inexpensive places to buy food . . . . . . . . . . . . . . . . .
True False
3
When buying clothing, quality is worth the extra money . . . . . . . . . . . . . . .
True
False
4.
Cooking is always cheaper than buying prepared foods . . . . . . . . . . . . . . . .
True False
5.
Most of your disposable income will be spent buying the basics . . . . . . . . . .
True
False
6.
End of season sales is a great way to save money buying clothing . . . . . . .
True
False
7.
Buying the basics refers to discretionary spending . . . . . . . . . . . . . . . . . . . .
True False
8.
Make a list before you go grocery shopping and stick to it . . . . . . . . . . . . . .
True
False
9.
When buying clothes, try them on. Reading the size is not enough . . . . . . .
True
False
10.
Two benefits of renting are mobility and cost . . . . . . . . . . . . . . . . . . . . . . . . .
True
False
11.
Car insurance is normally a small expense for young drivers . . . . . . . . . . .
True False
12.
Your utility bills can include electricity, cable TV and cell phone . . . . . . . . .
True
False
13.
Learn to read food labels so you know what you are buying . . . . . . . . . . . . .
True
False
14.
Inspect a used car carefully before you buy . . . . . . . . . . . . . . . . . . . . . . . . . .
True
False
15.
16.
Two expenses of renting would be insurance and real estate taxes . . . . . . .
Always buy national food brands rather than lower grades . . . . . . . . . . . . .
True False
True False
17.
Eating out and bringing in saves time, but is expensive . . . . . . . . . . . . . . . .
True
False
18.
When shopping for clothes, be sure to buy the latest fads to be in style . . .
True False
19.
Three benefits of buying a home are equity, appreciation and tax savings .
True
False
20.
Car expenses can include payments, insurance, gas and maintenance . . . .
True
False
Name: ____________________________________
Class: _______________________ Period: ____

Budgeting The Unexpected / Net Worth 6
1) Read each statement and circle A, B or C based on whether your first line of defense against
the unexpected expense would be (A) savings, (B) insurance or (C) credit. You may decide there
is more than one answer.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Your car just died and you need to buy a new one . . . . . . . . . . . . . . . . . . . .
Your refrigerator needs repaired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
You have a serious illness and need to have surgery . . . . . . . . . . . . . . . . . .
You had a car wreck and you were at fault . . . . . . . . . . . . . . . . . . . . . . . . . .
Your TV quit working and you need to buy a new one . . . . . . . . . . . . . . . . .
Your home burned down . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
You have been laid off for two months and are looking for a new job . . . . .
Your apartment was robbed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The transmission in your old car went out . . . . . . . . . . . . . . . . . . . . . . . . . .
There has been a death in your family and you have to fly home . . . . . . . .
A B C
A B C
A B C
A B C
A B C
A B C
A B C
A B C
A B C
A B C
2) After each item, circle whether it is an asset or a liability.
1.
2.
Your checking account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Your car loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset Liability
Asset Liability
3.
A savings bond . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset
Liability
4.
Your income from work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset
Liability
5.
Taxes you owe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset Liability
6.
The equity in your home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset
Liability
7.
Life insurance cash value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset
Liability
8.
9.
Your credit card balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Your outstanding bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset Liability
Asset Liability
10.
Stocks and mutual funds you own . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset
Liability
Name: ____________________________________
Class: _______________________ Period: ____

Budgeting Math Problems 7
Solve each of the following problems.
1.
Marilyn's biweekly gross pay is $1,200. Her deductions include 9.4% for
federal income tax, 6.2% for social security, 1.45% for medicare, and 3.5% for
state income tax. She has to pay her rent which is $550. How much will she
have left for other expenses?
$1,200 x .094 = $112.80
$1,200 x .062 = $74.40
$1,200 x .0145 = $17.40
$1,200 x .035 = $42.00
$112.80 + $74.40 + $17.40 + $42.00 = $246.60
$1,200 - $246.60 - $550 = $403.40
$ 403.40
2.
The Smith's current net worth is $324,476. Their assets have increased by
$11,346 and $9,786 over the last two years and their liabilities have increased
by $6,432 and $4,823. What was their net worth two years ago?
$11,346 + $9,786 = $21,132
$6,432 + $4,823 = $11,255
$21,132 - $11,255 = $9,877
$324,476 - $9,877 = $314,599
$ 314,599
3.
During the year, Ray paid the following electric bills: $82.74, $80.22, $73.18,
$71.82, $69.80, $121.96, $138.58, $105.85, $124.33, $72.67, $74.80, $80.75.
How many times greater than the smallest bill was the largest bill?
$138.58 / $69.80 = 1.985 = 1.99
1.99
4.
For her cable TV service, Rita has chosen expanded cable (channels 3-54) at
$24.05 plus two movie channels at $14.00 each. What is her monthly cost per
channel?
$ 0.96
$24.05 + $28.00 = $52.05
$52.05 / 54 = $ .96
Name: ____________________________________
Class: _______________________ Period: ____

Budgeting Math Problems 8
Solve each of the following problems.
5.
The Bradshaws estimated that they spent $2,965 last year on food for their
family of five. If $1,114 was spent on food away from home, what percentage
of their food budget was spent on food at home?
$2,965 - $1,114 = $1,851
$1,851 / 2,965 = .624 = 62.4%
62.4 %
6.
Russ has $120 deducted from each of his 26 paychecks and deposited in his
401(k) retirement plan. If the company matches 50% of his deposits, how
much will have been deposited in a year?
$120 x 26 = $3,120
$3,120 x 1.5 = $4,680
$ 4,680.00
7.
In adding up their total liabilities, the Swansons found they owed an average
of $2,855 on two different credit cards. One credit card had a balance of
$3,142. What was the balance on the other card?
$3,142 + x = $2,855 (2)
$3,142 + x = $5,710
x = $2,568
$ 2,568.00
8.
One family spent 6.5% of their $55,250 yearly income on clothing. Another
family spent 7.3% of their $42,500 income. What was the average amount the
two families spent on clothing?
$55,250 x .065 = $3,591.25
$42,500 x .073 = $3,102.50
$3,591.25 + $3,102.50 = $6,693.75
$6,693.75 / 2 = $3,346.88
$ 3,346.88
Name: ____________________________________
Class: _______________________ Period: ____