What does income mean?

• A. Money you save after paying bills.
• B. The total amount you owe to others.
• C. Money you earn from work or other sources, before spending.
• D. A fixed monthly expense.

Answer: (C)

Income means the money you earn from work or other sources, before you spend any of it. It can come from a paycheck, allowance, a small business, or interest from savings. Knowing your income helps you plan a budget because it shows how much money is available to spend or save. It’s not the money you save after paying bills (that’s savings), not the total amount you owe (that’s debt), and not a fixed monthly expense (that’s a cost you regularly pay).