Broke is not a personality trait
What are basic things you can do with money?
Spend Save Give
What is a Budget
A plan for how to use your money
What is an emergency fund?
Money set aside for unexpected necessary expenses?
What is debt
Money owed to any one for anything
What is an impulse purchase
An unplanned purchase made without much consideration.
What is the difference between Gross pay and Net pay?
Gross Pay, before deductions; Net pay is after taxes and deductions.
What is a Fixed Expense
An expense that stays the same month after month.
What is compound interest
Interest earned on the principal and previously earned interest.
What is interest on a loan?
The cost of borrowing money
What is Comparison Shopping
Evaluating prices, quality and value before buying
What is the difference between earning money and building wealth?
Earning money means receiving income, while building wealth means saving and growing money over time.
What is a zero based budget?
a budget in which income minus planned expenses, savings and giving equals zero.
What is the first Emergency fund goal?
$500
What is the debt snowball method?
Paying debts smallest to largest
You have $50 and spend $40 on a hoodie you didn't plan to buy. What type of spending decision did you just make?
An impulse purchase
Why might someone who earns a lot of money still be broke?
Because they spend all their money, don't save, or have too much debt.
What is the difference between a need and a want?
Need is essential, Want is not
What is the benefit to start investing at a young age?
More time allows compound growth to work
What is Principal?
The original amount invested or borrowed without interest.
Your friends are all buying $150 shoes, but you only have $75 saved. What financial mistake would you be making if you borrowed money just to fit in?
Giving in to peer pressure and going into unnecessary debt.
Why can two people earning the same income have very different financial situations?
One can be a natural saver and the other a natural spender.
A student earns $600, plans $350 for expenses, $150 for savings, and $50 for giving. How much is left to assign in a zero-based budget?
$50
What is the difference between saving and investing
Saving is for large purchases and emergency funds; investing is for retirement.
What is the difference between a debit card and a credit card, and which one can cause you to go into debt?
A debit card uses money you already have in your bank account. A credit card allows you to borrow money that you must pay back. A credit card can put you into debt!
A $900 phone is advertised as 12 monthly payments of $90. How much extra does that cost compared with paying $900 upfront?
$180 extra, because 12 × $90 = $1,080.