Ways to Pay
DOUBLE POINTS: Name two ways people can pay for goods and services.
Cash, debit card, credit card, e-transfer, cheque, mobile payment
What is a financial goal?
A plan to save or spend money for something in the future.
DOUBLE POINTS: What is an expense?
Money spent on goods or services.
What is interest?
Money earned on savings or paid when borrowing money.
What does it mean to trade?
Exchanging goods or services.
What is one advantage of using cash?
You can only spend the money you have, making budgeting easier.
DOUBLE POINTS: Give an example of a short-term financial goal.
Saving for a video game, book, or concert ticket.
Name one thing that could interfere with reaching a financial goal.
Unexpected expenses, impulse purchases, emergencies, loss of income.
DOUBLE POINTS: Which account usually earns interest: a savings account or a chequing account?
A savings account.
What does it mean to lend something?
To give something temporarily with the expectation it will be returned.
DOUBLE POINTS: What is one disadvantage of using a credit card?
You may spend more than you can afford and owe interest if not paid off.
Give an example of a long-term financial goal.
Saving for university, a car, or a home.
True or False: Buying things you don't need can make it harder to reach financial goals.
True.
DOUBLE POINTS: What is a bank fee?
Money a bank charges for certain services or accounts.
What does it mean to borrow?
To use something that belongs to someone else and return it later.
Why might someone choose to use a debit card instead of cash?
It is convenient, secure, and doesn't require carrying cash.
DOUBLE POINTS: Name two ways someone can achieve a financial goal.
Create a budget, save regularly, earn money, reduce spending.
Your bike tire suddenly breaks and costs $40 to repair. What type of obstacle is this?
An unexpected expense or emergency.
Who pays interest: someone saving money in a bank or someone borrowing money from a bank?
A borrower pays interest; a saver earns interest.
DOUBLE POINTS: What does it mean to donate?
To give money, goods, or time to help others without expecting anything back.
A student buys a $20 shirt with a credit card and doesn't pay the bill on time. What could happen?
Interest charges may be added, increasing the amount owed.
Mia wants to buy a bike costing $300. She saves $25 each month. About how long will it take her to reach her goal?
12 months.
DOUBLE POINTS: Sam spends all of his allowance on snacks each week even though he is saving for a gaming system. What advice would you give him?
Budget money, reduce spending on snacks, or save a portion each week.
A bank account charges $5 per month. How much will the fees total after one year?
$60.
DOUBLE POINTS: A student lends a friend $10 with the promise it will be repaid next week. Which financial action is taking place?
Lending.