Income (Scarce Resource)
What is income?
Money a person earns or receives
What is a need?
A:Something required to live or function
Groceries are usually what kind of expense
Variable
What does the 20% category represent?
Savings
A student saves 40$ a month for college. What type of savings is this?
Long-term
Why is income considered a scarce resource?
Because it is limited and must be used carefully
Which is a want rent or a new car?
A new car
Rent is an example of which type of expense?
Fixed
What percent of income goes to needs in the 50/30/20 rule?
50%
Choosing public transportation instead of owning a car is an example of what?
A trade off
A teen earns $120 a week from a part time job. Is this earned or unearned income?
Earned income
Internet access for school work is best classified as what?
A need
Name one fixed and one variable expense.
Fixed:rent Variable:food
If you earn $1,000 a month how much should go to wants?
300$
What is the opportunity cost if you buy a 60$ hoodie instead of saving?
The savings you gave up
If your monthly income is 1,200$ and your expenses are $1,300$ what problem do you have?
Expenses are greater than income
you must choose between going to a party or going to get medicine which is a need?
Medicine
What is a fixed expense?
A cost that stays the same each month
What rule are you breaking if your needs take up 60%
50% rule
What is a trade off?
Giving up one thing to get another
You earn 900$ a month and want to save 150$, How much income is left for spending?
750$
A student buys video games instead of paying their phone bill, What budgeting mistake did they make?
Choosing wants over needs
If your electric bill changes each month, How is it classified?
Variable
You earn 2,000 monthly. How much should you save using the 50/30/20 rule?
400$
Why did the chicken cross the road
There's no answer