Here is the completed
Financial Literacy Vocabulary worksheet with correct answers and explanations for each:
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1.
The tax paid on money you earn from working is called income tax.
✔ *Explanation:* Income tax is levied by the government on earnings from employment, investments, or other sources.
2.
The total amount of money an employee is paid for working before taxes is gross income.
✔ *Explanation:* Gross income is the total earnings before any deductions like taxes or insurance are taken out.
3.
An estimate of income and spending for a period of time is a budget.
✔ *Explanation:* A budget helps individuals or families plan how to allocate their money over a specific period (e.g., monthly or yearly).
4.
The tax paid on your home or land is called property tax.
✔ *Explanation:* Property tax is assessed annually by local governments based on the value of real estate owned.
5.
The amount an employee is paid after taxes is called net pay.
✔ *Explanation:* Net pay (also known as take-home pay) is what remains after all taxes and deductions are subtracted from gross income.
6.
The amount of money someone makes is their income.
✔ *Explanation:* Income refers to money received regularly, typically from work, investments, or business.
7.
The tax on goods or services is called sales tax.
✔ *Explanation:* Sales tax is added to the price of goods and services at the point of sale, usually collected by retailers.
8.
The expenses that do not change are called fixed expenses.
✔ *Explanation:* Fixed expenses remain constant each month, such as rent, mortgage payments, or car payments.
9.
When income and expenses are aligned it is called a balanced budget.
✔ *Explanation:* A balanced budget occurs when total income equals total expenses—no surplus or deficit.
10.
The expenses that change from month to month are called variable expenses.
✔ *Explanation:* Variable expenses fluctuate in amount each month, such as groceries, entertainment, or utility bills.
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Final Answer Key:
1.
Income
2.
Gross income
3.
Budget
4.
Property
5.
Net pay
6.
Income
7.
Sales
8.
Fixed
9.
Balanced budget
10.
Variable
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