Kyle just started college. He also decided to establish a personal budget, but he’s unsure of

Question

how to categorize his income and expenses. For example, he’s unsure how to categorize the
extra money he earns and saves each month. How should it be categorized?
(1 point)
as earned income
as a monthly expense
as unearned income
as a pre-tax expense

Answer 1

The extra money that Kyle earns and saves each month should be categorized as unearned income. This refers to income that is not directly earned from traditional employment, such as gifts, interest earned on savings accounts, or investments.