Income and Expenses Worksheet

Income and Expenses

Read each question carefully and answer to the best of your ability. Show all your work for calculations.

1. Which of the following is considered a variable expense?

2. Gross income refers to:

3. The money an individual or business receives in exchange for providing a good or service or through investing capital is called  .

4. A budget is a financial plan that helps you track your   and  .

5.   are costs that do not change from month to month, like rent or loan payments.

6. Sarah earns a gross salary of $4,500 per month. Her deductions include $800 for taxes, $150 for health insurance, and $200 for her retirement plan. Calculate her net income.

7. John's monthly expenses are as follows: Rent $1,200, Utilities $150, Groceries $400, Transportation $100, Entertainment $250. If his net income is $2,500, how much does he have left after all expenses?

8. Net income is always greater than gross income.

9. Fixed expenses are easier to adjust in a budget than variable expenses.

Use the words below to complete the sentences.

10. When your income is greater than your expenses, you have a financial  .

11. A   is a tool used to manage your money effectively.

12. Expenses for wants, rather than needs, are often called   expenses.