Needs vs. Wants
Give two examples of Physiological Needs.
Food, water, job security, etc.
Where will you Save Money? Give 2 options.
•Put money in a jar or piggy bank
•Open a savings account
Who is a lender and borrower?
•Lender = person or company that gives money.
•Borrower = person who takes money.
What is Debt?
money you owe.
Wearing a Halloween costume relates to which level in hierarchy of needs?
Love and Belonging. People often wear costumes to fit in, have fun with friends, and feel part of a group or celebration.
Why Saving money is important? 2 reasons
•Safety Net for Emergencies (unexpected costs)
•Reaches your Future Goals (buying something bigger)
Give 3 Everyday Examples of Credit.
•Credit card purchases
•Student loans
•Car loans
•Mortgages (home loans)
•“Buy now, pay later” apps
When is Borrowing ok?
if you can repay it.
Who created Pyramid of Needs?
Abraham Maslow
Define Opportunity Cost
Choosing one thing = Giving up another
Why People Use Credit? Give 3
•To buy expensive things (car, school, home)
•To cover emergencies
•To build a credit history
Define: Credit and Debit
Credit = Borrowed money
Debit = Your own money
After psychological needs are met, what is the next level of focus according to hierarchy of needs?
Self-Fulfillment Needs and Self-Actualization Needs
What is Impulsive Buying?
Impulse buying is like suddenly buying something you didn't plan to get at all, often because it's right there and looks fun, exciting, or is a good deal.
Define:
Principal
Interest
Credit Limit
Principal: The amount borrowed
Interest: Extra money charged by lender
Credit Limit: Maximum amount you can borrow
Why People Go into Debt?
•Spending more than they earn
•Impulse buying
•Not saving for emergencies
List all the levels in Maslow’s Hierarchy of Needs and give one example for each level.
Physiological Needs – Basic things we need to live, like food, water, and sleep.
Safety Needs – Feeling safe and protected, like having a home or police for protection.
Love and Belonging Needs – Having friends, family, and people who care about you.
Esteem Needs – Feeling confident and respected, like getting good grades or awards.
Self-Actualization Needs – Reaching your full potential, like learning new skills or following your dreams.
Give 4 differences for Smart Spending vs. Impulse Buying.
•Plan before you spend
•Compare prices for cheaper options
•Wants can wait
•Needs and savings come first
How Credit Works? 3 steps
•You borrow a certain amount
•You agree to pay it back — with interest
•The lender tracks your payment history
3 differences of Good vs. Bad Borrowing
Good Debt
Helps you grow (school, car, house)
Planned
Builds future
Bad Debt
Wastes money (shopping, trends)
Impulsive
Builds stress