Income ?'s
Money coming in.
(+)
Income
What is expense?
Money going out.
Money being removed/taken away.
(-)
What does balancing a budget mean?
Plan of managing your incomes and expenses. Balancing the amount of income coming in and expenses going out.
What is a savings account?
Bank account where you store money and keep storing income.
What is interest?
The amount an account holder (person) receives for the favor of leaving money with the bank.
Increase in money overtime
Income before taxes/expenses are taken out.
Gross Income
Paying bills, going grocery shopping, buying pizzas for a pizza party would be considered what?
Expense
When balancing a budget what are two important things to keep track of?
income and expenses
What is a checking account?
Access and transfer/take away money
Pay bills/purchases
Write and deposits money
Use debit card
Better for everyday transactions
Which type of bank account receives interest?
savings
Income after expenses are taken out.
Gross income (+) - Expenses (-) =
Net income
Sam owes Tina $40.00. Sam has $300 from his paycheck. Sam also has rent that cost $200. Does he have enough to pay rent and Tina? If so, how much will he have left over? (bonus point)
yes and $60 left!
What should be either the same or more than the expenses when balancing a budget?
Income
Taking money from your savings account is used mainly to buy what types of purchases?
bigger/larger purchases
True or False: The higher a savings account APY, the better.
true
Marcus got $20 dollars for his birthday and another $30 from his job. How much income did Marcus make?
$50
Mary had to pay her bills this month. Her bills this month are $45 for gasoline, $56 dollars for grocery shopping, and rent $355. She has $500 from her last paycheck. Does she have enough to pay for her expenses?
yes
Does a budget help us see if we have enough money to pay for items that we have to pay for?
yes
Savings accounts have interest, does a checking account receive interest?
no
What if Sam had $8,000 in savings with the APY interest rate 1%. How much interest would Sam receive at the end of the first month?
$6.67
Max had a gross income of $100 dollars before taxes. Taxes are $10 dollars. What is Max’s net income?
$90
Kate received a gross income $300 dollars for the month. Her bills this month are $100 dollars. She then went grocery shopping and spent another $100 dollars on food. How much were her expenses for the month?
$200
Dylan got his paycheck of $300. He went grocery shopping and the bill was $100. Dylan got paid $20 for walking his neighbor’s dog. He really wants to buy a bike that costs $200. Does he have enough money to buy the bike?
yes!
When buying a brand new expensive fancy house, what type of bank account would you take from to pay for this large expense?
Savings
Haley has $100,000 in her savings account and his bank pays 1% APY. How much money will she have when the amount of interest is added into her savings account? (what would be the total amount)
Hint: savings amount x (x% APY) = interest
12 months
Interest + original savings account amount = total amount for the month.
$1083.33