Money Basics
What is income?
Income = money you earn (job, benefits, etc.)
What is a bank?
A bank = a place to store and manage money
What is a bill?
A bill = money you owe (rent, phone, etc.)
What is credit?
Credit = borrowing money that you pay back later
What is rent?
Rent = money paid to live somewhere
What is saving?
Saving = putting money aside for later
What is a checking account used for?
Checking account = used for spending and paying bills
Name one monthly expense
Examples: rent, food, phone, utilities
What is a credit score?
Credit score = number that shows how well you manage debt
What is a mortgage?
Mortgage = loan used to buy a home
What is a budget?
Budget = a plan for how you spend your money
What is a savings account used for?
Savings account = used to save money over time
What happens if you spend more than you earn?
You go into debt or run out of money
What is a loan?
Loan = money borrowed that must be repaid
Name one utility bill
Examples: electricity, water, gas
What is interest?
Interest = extra money earned or paid over time
What is a debit card?
Debit card = uses money directly from your bank account
What is a need vs a want?
Need = something necessary (food); Want = something extra (snacks, games)
What happens if you don’t pay a loan?
Your credit score drops, and you may face fees or collections
What is an emergency fund?
Emergency fund = money saved for unexpected situations
Why is saving important?
Saving helps you prepare for emergencies and future needs
What happens if your account goes negative?
You may be charged a fee or owe money (overdraft)
Why should you track spending?
To avoid overspending and stay in control of money
Name one way to build good credit
Pay bills on time, use credit responsibly
Why is it important to plan for unexpected expenses?
Unexpected costs happen (car repair, medical, etc.)