Saving/Spending
What is an alternative to spending?
Saving
Name three different currencies.
Euro, Yen, Pound, etc.
What is the plan called that helps you decide when to spend or save your money?
Budgeting
What happens to prices when there is an increase in inflation?
Prices go up.
What does CDS stand for?
What is the most commonly used type of payment?
Credit/Debit Cards
What is the breakdown for the classic budgeting strategy (? / ? / ?)
(50% Needs/ 30% Wants/ 20% Savings)
When there is inflation, does your money lose or gain value?
Lose value
What is the term called for the percentage that the bank pays to customers for keeping their money in a savings account?
The interest rate
What is a debit card, and how does it differ from a credit card?
A debit card lets you spend money you already have in your bank account, while a credit card lets you borrow money to pay back later.
When you’re older, what percentage of your money should you spend on things like food and rent?
50%
What is an example of inflation?
Answers will vary.
Pretend a chicken bake is $5 and a double chunk chocolate cookie is $2.50. What is the opportunity cost of buying 2 chicken bakes?
4 double chunk chocolate cookies
Do you have more spending power with 5 Pesos (1 Peso = $0.05) or 1 Euro (1 Euro = $1.09) and why?
1 Euro
What percentage of your money should you save in case of emergencies?
20%
What is Deflation?
a decrease in the general price level of goods and services.
You have $100 in a savings account. The account earns 5% interest each year. How much money will you have after 1 year?
A) $105
B) $110
C) $115
D) $120
A) $105
What's one currency that is currently worth more than a US dollar?
Example: The Euro (1 Euro = $1.09)
Let’s say you are saving up for a bike, but you also want to buy the “Fortnite Battle Pass.” Right now you have $20. How much should you save for your bike and how much should you spend on Fortnite?
$10 for the bike, $10 for Fortnite
Who is in charge of controlling inflation (hint: think of the name of our club)?
The Central Bank (In the U.S. this is the Federal Reserve or Fed for short)