Budgeting Basics
A plan for spending and saving money.
What is a budget?
This card takes money directly from your checking account.
What is a debit card?
This degree usually takes 2 years after high school.
What is an associate degree?
The cost for one item.
What is unit price?
You buy snacks instead of saving money. The savings you gave up are called this.
What is opportunity cost?
Money you are spending.
What is an expense?
This card allows you to borrow money to make purchases.
What is a credit card?
This degree usually takes 4 years after high school.
What is a bachelor’s degree?
Give one example of a need.
Possible answers: food, water, shelter, clothing
You get paid the same amount every month no matter how many hours you work.
What is salary?
An expense you cannot live without.
What is a need?
A fee charged for borrowing money.
What is interest?
This type of pay is fixed and does not change based on hours worked.
What is a salary?
Give one example of a want.
Possible answers: video games, candy, designer clothes
Using a credit card is a good idea when you do this.
What is paying the balance on time/in full?
An expense you would like to have but do not need.
What is a want?
Money automatically transferred into your bank account electronically.
What is direct deposit?
This type of pay is based on time worked.
What is a wage?
A smart reason to compare unit prices while shopping.
What is saving money/getting the best value?
Name two things that should be included in a budget.
Possible answers: income, food, bills, savings, transportation, entertainment
The next best choice you give up when making a decision.
What is opportunity cost?
The problem with only paying the minimum balance on a credit card.
What is paying more interest/taking longer to pay off debt?
A tax paid on the money you earn.
What is income tax?
One strategy that can help save money for college.
Possible answers: scholarships, savings account, budgeting, working a job
Why can paying only the minimum balance on a credit card become a problem?
Because interest keeps building, making the debt take longer to pay off and cost more money overall.