Vocabulary
something you gain or lose when you make a decision
What is trade off?
You put off making money decisions
What is an Avoider?
Lyla gets a weekly allowance from her parents, but every time the librarian asks her if she’d like to pay the fees at the checkout station, Lyla says she’ll do it the next time she comes.
What is an Avoider?
Friends’ opinions / peer pressure
Advertisements
Celebrity influencers
Family members
Social media
Emotions (fear, gratitude, etc.)
Values (needs vs. wants)
Their financial situation, such as debt and how much they have saved
The economy
What are factors that influence your decisions around money?
Jason gets an allowance of $20 every week from his parents. He has saved up $100 so far in a savings account. He wants to buy a new gaming system that cost $450. How much more money does Jason need before he can buy the gaming system?
What is 350?
Strong beliefs, feelings, or ideas about what you feel is important
What are values
You enjoy spending and think little about how to pay for your purchases
What is a Spender?
Jordan is in 7th grade and has been working mowing lawns for his neighborhood for the past year. He has saved $350 so far in his savings account and checks his account balance every other day. He usually doesn’t like to buy things even if they will benefit him.
What is a Miser?
You can make financial decisions that align with what is important to you
You can tune out external influences such as social media, peer pressure, etc.
You might feel happier about your financial decisions
Why is it important to know what your values are, especially when making decisions about money?
Jason gets an allowance of $20 every week from his parents. He has saved up $100 so far in a savings account. He wants to buy a new gaming system that cost $450. How much more money does Jason need before he can buy the gaming system? How many months will it take Jason to save this much money?
4.375 months
What you give up to get what you want
What is Opportunity Cost?
You care about others who have less than you do, and you often feel guilty about having more than they do
What is a Thinker?
When Jade goes to the store and sees a homeless person, she makes sure she finds a way to get them something before she leaves.
What is a Thinker?
You can align your financial decisions with what you value
You are aware of any negative habits you may have and take action to change them
You are aware of any positive habits you may have and take action to reinforce them
Why is it important to know what influences your financial decision making?
You like to see your money make money
What is a Collector?
When you buy or do one thing with your money, you have to give up the chance to buy or do something else
What is trade-off?
You like to save every penny. You do not enjoy spending money.
What is a Miser?
If I spend $5 on renting a movie, I can no longer use that same resource, my $5, to buy something else like snacks or a comfortable blanket.
What is opportunity cost?