Financial Wants
What is a want?
Something that you would like to have, but you don't need.
What is a need?
What is a debit card?
A card that gets charged right after you swipe and it comes from your account.
What is a budget?
How you plan to spend your money.
The price you pay to borrow money or the cost you charge to lend money.
What is Interest?
What is an example of a want?
What is an example of a need?
Food, clothes, water, shelter
What is a credit card?
A card that you use to buy something, but you have to pay back because it's not your money.
An exchange of one-product for another-product, typically without the exchange of currency.
What is a trade?
If you are loaning money, would you prefer a high or low interest rate? Explain.
High, because then you will accrue more money in interest payments.
You have been doing odd jobs around your house and your community. So far you have earned $100. If you save 75% of your earnings, how much will you have left for your wants?
What is $25?
You have been saving up for a new TV that costs $500. Currently you have saved $250 in your account. You have also been approved for a credit card. Your credit limit is $1,000. Would you use your credit card to buy the TV or would you continue to save? Why?
Your opinion
How do you pay a credit card back?
Write a check, call, or go to the bank.
Giving money to a person or business with the expectation that it will be repaid. For example: a mortgage.
What is loaning.
If you are borrowing money, would you prefer a high or low interest rate? Explain.
Low, as you will end up paying less money in interest as you repay the borrowed money.
Credit Unions offer services that have to do with money. Name two services we provide that deal with money.
Savings account, checking account, loans, debit and credit cards
You have been accepted by the Credit Union and now have enough money for your new car. You still have a responsibility to the Credit Union. What is that responsibility?
You have to pay the Credit Union back since it wasn't your money to begin with. You borrowed it.
Non-electronic way of paying for goods.
What is cash or cheques.
Receiving money with an agreement to repay it in future, usually with interest charged.
What is borrowing?
The proportion of an amount loaned that a lender charges the borrower as interest, usually an annual percentage of the outstanding balance.
What is Interest Rate?
Your old car has died and you need a new one. You do not have enough money in your savings account. What do you need to apply for?
A loan
Now that you have a savings account, your bank decides you can have a debit card to help you spend your money. You must be responsible with your debit card otherwise the bank may cancel it. How will you be responsible with your debit card?
- Take care of it
-Put it in a safe place
-Don't tell people your pin number
What is a type of financial product that allows people to save money for the long-term called?
What is a savings account
Giving a gift for charity, humanitarian aid, or to help a cause. Typically money, services, and goods such as clothing, toys, and food.
What is donating?
The formula for calculating simple interest.
What is I= PxRxT