Throw it in the bag!
What is comparison shopping?
Comparing prices and features of products before buying to get the best value.
What is a budget?
A plan for how to spend and save your money.
What is a checking account used for?
Managing everyday spending and paying bills.
What does the 50/30/20 rule represent?
50% needs, 30% wants, 20% savings.
What is interest?
The cost of borrowing money or the money earned on savings
What is opportunity cost?
The value of the next best alternative you give up when making a decision
What are fixed expenses?
Expenses that stay the same each month, like rent or a car payment.
What is a debit card?
A card that withdraws money directly from your checking account.
Which category does rent fall under in 50/30/20?
Needs.
What is credit?
The ability to borrow money and repay it later.
What is the difference between a need and a want?
A need is essential for survival; a want is something nice but not necessary.
What are variable expenses?
Expenses that change from month to month, like groceries or entertainment.
What is an overdraft?
Spending more money than is available in your account.
If you earn $2,000 per month, how much should go to savings under 50/30/20?
$400.
What is a credit score?
A number that represents your creditworthiness.
What is consumer fraud?
Deceptive practices that trick consumers into giving away money or personal information.
What happens if expenses exceed income?
You go into debt or must use savings to cover the difference.
What is an overdraft fee?
A fee charged by the bank when you spend more than your account balance.
Why is the 20% savings portion important?
It builds emergency funds and supports long-term financial goals.
What is identity theft?
When someone steals your personal information to commit fraud.
Why is it important to read contracts before signing?
Because contracts are legally binding and may include fees, penalties, or obligations.
Why is tracking spending important?
It helps identify spending patterns and prevents overspending.
Why should you reconcile your account?
To ensure your bank balance matches your records and to catch errors or fraud.
What might happen if you consistently spend more than 30% on wants?
You may reduce savings and risk financial instability.
Why is an emergency fund recommended before investing?
It protects you from unexpected expenses so you don’t go into debt.