Credit/Debit
What is a credit card?
A credit card lets you borrow money from a bank to buy things now and pay later.
What are the three categories of a budget?
Needs, wants, savings
Why do we use money in our economy?
We use money instead of trading things. Makes buying and selling easier.
When a lot of people want a new video game, and there aren’t many copies in stores, what happens to the price?
Price goes up
What is a pro and a con of having a debit card?
Pro:
No interest, easy to track spending, less chance of debt
Con:
Decline, no credit
What is a budget?
A budget is a plan for how you spend and save your money.
What is an economy?
A system where people make things (goods), do things for others (services), and exchange them.
Two kids set up lemonade stands. One charges $1 per cup and sells out fast. The other charges $5 and sells nothing. What lesson about supply and demand (and price) can you learn from this situation?
Prices should match demand — if the price is too high and demand is low, people won’t buy it
Three comparison categories between credit and debit, and explain the difference.
Money source, interest, risk, builds credit, good for, usual age
What is a budgeting rule that talks about the ideal numbers of budgeting?
50-30-20 Rule
Explain services
Service: something someone does for you (haircut, carwash)
What is opportunity cost?
What you give up when you choose something else
2 safety tips about credit and debit cards
Know how much you have, Pay credit cards on time, Only spend what you can pay back, Keep your card info safe
Spend when you can
True or False
In our town economies, we learned that jobs, goods, and services all help the economy grow. What is the term for the things people make or grow to sell, like apples, toys, or clothes?
Goods
A popular concert sells out quickly because so many people want tickets. What is this an example of?
High demand and low supply (scarcity)