Needs VS Wants
Is food a need or a want?
Need
What is a budget?
A plan for how to spend and save money
What does a bank do with your money?
Keeps it safe and lends it out
What is credit?
Borrowing money with the promise to pay it back
Why should people save money?
Emergencies and future goals
Is a video game a need or a want?
Want
Name one fixed expense
Rent, mortgage, insurance, phone bill
What is a checking account mainly used for?
Daily spending
What is a credit card?
A tool that lets you borrow money up to a limit
What is an emergency fund?
Money saved for unexpected expenses
Is housing a need or a want?
Need
Name one variable expense.
Food, entertainment, clothing
What is a savings account mainly used for?
Saving money and earning interest
What happens if you only pay the minimum balance?
You pay more interest over time
What is investing?
Using money to try to grow wealth
Is brand-name clothing a need or a want?
Want
If you earn $500 and spend $450, how much do you save?
$50
What is interest?
Money earned (or paid) for borrowing or saving
What is a credit score?
A number that shows how reliable you are at repaying debt
What is a stock?
Ownership in a company
Why is knowing the difference between a want and a need important?
Helps prioritize spending
Why is budgeting important?
Helps manage money, avoid debt, and reach goals
What does FDIC insurance protect against?
Bank failure
Name one way to build good credit.
Pay bills on time, keep balances low
What is diversification?
Spreading money across different investments to reduce risk