Money Basics
What is income?
Money you earn from a job or other sources
What is a savings account used for?
To store money and earn interest.
What is credit?
Borrowing money that you have to pay back.
What does it mean to comparison shop?
Looking at different prices before buying.
You have $20 and want food and a video game. What should you think about first?
Needs vs. wants
What is a budget?
A plan for how you spend and save your money
What is interest?
Extra money earned from saving or paid when borrowing.
What is a credit score?
A number that shows how reliable you are with money.
What is an impulse purchase?
Buying something without planning.
Your friend wants you to spend all your money going out. What is a smart choice?
Stick to your budget/ don't overspend.
What is the difference between a need and a want?
Needs are necessary (food, shelter), wants are extra (shoes, games)
Why is saving money important?
Late fees + credit score goes down.
What is a good way to avoid overspending?
Make a budget/ plan before spending.
You forgot to pay a bill. What might happen?
Late fees/ credit impact
What is a fixed expense?
A cost that stays the same (rent, phone bill)
An account used for everyday spending.
What is interest on a loan?
Extra money you pay for borrowing.
What is it important to track your spending?
You get unexpected money ($100). What is a smart move?
Save some/ budget it
What is a variable expense?
A cost that can change? ( food, environment)
What is an emergency fund?
Money set aside for unexpected situations
Why is a higher credit score better?
You get better loan options and lower interest rates.
What is a financial goal?
Something to plan to save money for
You want to buy a car but have bad credit. What might happen?
High interest rates/ harder approval