What is a budget?
A budget is an estimate of income and spending for a period of time.
What are Savings?
Saving means not spending all of your money right away. It means putting some money aside, so you have it later.
What is a SMART goal?
Your goal should be Specific, Measurable, Attainable, Relevant, and Time-based.
True or False: People with growth mindsets more often achieve what they set their mind to
True
Define needs and wants.
Needs are things you must have to live and stay healthy.
Examples: Food, water, shelter, clothes.
Wants are things you don’t need, but they make life fun or easier. For e.g.: Toys, candy, video games, new shoes.
What are some smart saving tips?
It’s never too late (or early) to start saving
Set your goal
Find the right option for you and your goals
Open your saving account(s)
Be ready for the unknown
Pay yourself first
Review regularly
What is paying yourself first?
Setting aside your earnings for savings first before spending.
1. Receive earnings (i.e. paycheque, allowance)
2. Put $$ into savings
3. Reward yourself for paying yourself first
Which mindset is more likely to try something new when one approach fails?
A growth mindset
What is 50/30/20 rule?
Income put into 50% of needs, 30% for wants, 20% into your future savings.
What is Compound Interest?
Interest on interest. Interest added to the original amount (principal) and then calculated on that new amount.
Start saving/investing earlier means you have more time for your interest to compound.
(Principal + previous interest) x Interest rate = Next interest
How can you calculate a savings goal?
Determine the amount of money you need to reach your goal and how long your goal is for. Then use the formula:
True or False: Anyone can develop a growth mindset?
True!