Assets & Liabilities
What is an asset?
Something valuable that can help you make money in the future.
What is a budget?
A plan for how you spend and save your money.
What is debt?
Money you borrow and must pay back.
What is a bond?
A loan you give to a company or government.
What are earnings?
Money a company makes after expenses (profit).
What is a liability?
Something you owe, like a loan or bill.
In the 50/30/20 rule, what percent is for wants?
30%
Which is good debt?
Student or business loan (helps your future).
What are capital gains?
Profit made when you sell something for more than you paid.
Another name for earnings?
Net income or bottom line.
Give one example of an asset.
House, car, or savings account.
If you earn $3,000, how much goes to savings?
$600
Which is bad debt?
Credit card debt for things you don’t need.
Name one way to invest.
Buying stocks or bonds.
Why save money?
To prepare for emergencies and reach goals.
Give one example of a liability.
Credit card debt or student loan.
Why is budgeting important?
It helps you control your money and reach goals.
Why can some debt be good?
It helps you grow your income later
Why invest in bonds?
To earn interest safely over time.
If you save $50 per week, after 4 weeks?
$200
True or False: Your phone bill is an asset.
False — it’s a liability.
Name one need and one want.
Need: Rent | Want: Movie ticket
True or False: All debt is bad.
False
What is a capital loss?
Selling something for less than you paid.
How can you grow savings faster?
Earn interest or invest it.