Needs vs. Wants
Expenses necessary for basic living like food, housing, and utilities.
What are needs?
The amount of money you have left after expenses.
What is disposable income?
A price reduction offered by a store.
What is a discount?
Spending more money than you earn.
What is overspending?
Setting money aside regularly for future use.
What is saving?
Non-essential items like entertainment, dining out, or luxury goods.
What are wants?
Thinking about what you give up when choosing one option over another.
What is opportunity cost?
A digital or paper code used to lower the price of a purchase.
What is a coupon?
This happens when you are charged multiple fees for not maintaining account requirements.
What are bank fees?
Automatically transferring money into savings is called this.
What is automatic saving?
This strategy helps reduce impulse buying by waiting before making a purchase.
What is the 24-hour rule?
This type of spending focuses on aligning purchases with your values and goals.
What is mindful spending?
Buying items in larger quantities to save money per unit is called this.
What is buying in bulk?
A common scam where someone pretends to be a trusted source to steal information.
What is phishing?
Paying your bills on time helps build this.
What is good credit?
Comparing prices before buying to get the best deal is called this
What is comparison shopping?
A financial plan for future income and expenses.
What is a budget?
This tactic tricks shoppers into buying more by offering “limited-time” deals.
What is scarcity marketing?
This type of loan often has extremely high interest rates and short repayment periods.
What is a payday loan?
This habit involves reviewing your bank account and spending regularly.
What is financial monitoring?
This financial habit involves tracking where your money goes each month.
What is expense tracking?
This term describes regularly reviewing and adjusting your financial plan.
What is financial planning?
The price of each individual item when comparing sizes or quantities.
What is unit price?
Failing to pay bills on time can negatively impact this.
What is your credit score?
Setting specific, measurable money targets is known as this.
What are financial goals?