Budgeting Quiz 1

What action corresponds to the advice "Pay Yourself First?"

Wait until the end of the month to determine how much to save

Directly deposit 20% of your paycheck into your savings account

Spend your regular paycheck and save your bonus check

Take two jobs and use one job for your expenses and one job for your wants

Which of the following items will NOT reduce your gross pay?

Investment income (like interest from a savings account)

State taxes

FICA (Social Security)

Federal taxes

Isaiah works for the summer at a technology company and has a salary for the summer of $3,000. After federal and state taxes and Social Security/Medicare taxes are deducted, his take-home pay is $2,500. Which of the statements below is correct?

His gross pay is $2,500 and net pay is $3,000

His gross pay is $3,000 and net pay is $2,500

His gross and net pay are $3,000

His net pay and gross pay are $2,500

When you are creating a budget you should always...

Budget to your gross income

Budget based on your lifestyle

Only save what you have leftover after you budget

Budget to your net income

Federal Income tax is determined by

It's a fixed percentage, everyone pays the same percent

The amount you make, the more you make, the more they take

Your earned income only

Your unearned income only

Your gross pay is $4,200 per month. You pay 20% in Federal Tax; 3.5% in state tax; 6.2% in Social Security tax; 1.45% in Medicare tax; and $150 in Health Benefits and $200 in Retirement benefits. What is your Net Pay?

$2,890.70

$3,850

$2,541.70

$1,323

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Budgeting Quiz 1

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