Money Basics
What is income ?
Money a person receives from working, a business, or other sources.
What does saving mean ?
Setting money aside to use in the future instead of spending it right away.
What is an influencer ?
Someone who uses social media to share content and may influence what other people think, buy, or do.
What is a money goal ?
Something you plan to save or use money for.
Is buying lunch a need or want ?
It depends. Eating is a need, but buying a particular lunch instead of using food already available be a want. The situation matters.
What is a budget ?
A plan for how you will earn, save, and spend your money.
Name one reason to save money.
To pay for emergencies, buy something important, reach a goal, or prepare for the future.
How can social media influence spending ?
Ads, influencers, and trends can make people feel like they need to buy certain products to fit in or keep up.
Name one short-term money goal.
Saving for a book, a game, a school item, or something else you plan to buy soon.
You have $20 and spend $15. How much is left ?
$5.
What is the difference between a need and a want ?
A need is something necessary, like food or housing. A want is something you would like to have but can live without.
What is impulse buying ?
Buying something without planning to, often because you want it immediately.
Why might someone buy something just because it's trending ?
They want to fit in, feel included, copy someone they admire, or avoid feeling left out.
Why is it important to plan before spending ?
Planning helps you prioritize important expenses, control spending, and make progress toward your goals.
You get $50. How would you divide it between spending and saving ?
Answers will vary. One example is saving $20 and spending $30 responsibly.
Why is it important to know how much money you have ?
So you can plan your spending, avoid running out of money, and make responsible financial decisions.
What can happen if you spend all your money at once ?
You may not have enough money for necessities, unexpected expenses, or future goals.
Name one way to avoid pressure to buy something online.
Wait before buying, check your budget, compare prices, or ask yourself whether you really need or want it.
What is one example of a long-term money goal ?
Saving for college, a car, future housing, or another goal that make take you months or years to reach.
You want sneakers for $80, but you only have $50. What are two smart choices ?
Save the remaining $30 before buying them , or look for a similar pair at a lower cost.
Explain how a budget can help someone manage their money.
A budget helps someone track their money, pay for important things first, save for goals, and avoid overspending.
You receive $100. Explain how you would save some and spend some responsibly.
Answers will vary. For example, save $40, spend $40 on planned needs or wants, and keep $20 for future expenses.
A popular influencer promotes expensive clothes. How can you decide whether buying them is worth it ?
Check whether you actually like and need the clothes, whether they fit your budget, whether the quality matches the price, and whether you would want them without seeing the influencer promote them.
Explain the steps you would take to reach a $300 savings goal.
Set a deadline, decide how much to save regularly, keep the money separate, track progress, and avoid unnecessary spending. For example, saving $25 each week would reach $300 in 12 weeks.
You have money for either something you want today or something important next week. How would you decide what to do ?
Consider which expense is more important, handle necessities first, and save enough for next week's expense before deciding whether to buy the item you want.