Exploring Financial Literacy 60 Copyright Goodheart-Willcox Co., Inc. May not be reproduced or posted to a publicly accessible website. Review Your Knowledge Choose the correct answer for each of the following. _______ 1. You can track expected income and expenses for a given period using a(n) _____. A. financial goal B. investment C. budget D. deficit _______ 2. Your _____ will guide you as you create your budget. A. goals B. age C. disposable income D. spending _______ 3. Money you receive for working at a job is an example of _____. A. income B. an expense C. discretionary income D. a financial goal _______ 4. You paid $16.50 for a haircut. This amount represents a(n) _____. A. income B. expense C. goal D. charge _______ 5. Last week, you paid $4.50 for lunch on Monday, $3.00 for lunch on Tuesday, and $2.75 for lunch on Wednesday. The amounts you paid for lunch are _____. A. fixed expenses B. variable expenses C. discretionary expenses D. discretionary income _______ 6. You take weekly music lessons that cost $15 per week. This is an example of a(n) _____. A. fixed expense B. variable expense C. voluntary expense D. income _______ 7. What does the phrase “pay yourself fi rst” mean? A. Set aside money for all your wants in your budget. B. Write yourself a check for spending money every week. C. Set aside money to save as part of your budget. D. Set aside money after all expenses are met.