Lesson 1: Earning & Budgeting
Check Your Understanding
1. "Take-home pay" refers to:
Gross income
Net income after taxes and deductions
Income before any work is done
Only salary (not wages)
2. In the 50/30/20 rule, what percentage goes toward savings?
50%
30%
20%
10%
3. FICA taxes fund:
Public schools
Social Security and Medicare
Federal highways
National defense
4. If monthly income is $3,000 and expenses total $3,000, the budget is:
In deficit
Balanced (zero-based)
In surplus
Cannot be determined