Definitions
What is Income?
The money earned by an individual or business through a variety of sources.
Name 3 types of payment methods
Ex: Cash, Credit, Debit
Why is budgeting important?
Allows for you to reach certain financial goals as well as stay on top your expenses.
What are 3 different types of income?
Ex: Hourly Wage, Salary, Weekly Allowance
What is Budgeting?
Balancing your income with your expenses!
What are the pros and cons of cash?
Widely Accepted/ Very accessible but easy to lose/ prone to theft.
In the budgeting game played in class certain emotions
Tracking expenses/income, making adjustments, setting realistic spending priorities, reviewing/ updating your budget regularly.
What are the two categories that expenses can be divided in?
Needs and Wants!
What are expenses?
The money we spend on things that we need/want.
What are the pros and cons of a credit card?
Why is tracking your income and expenses important when budgeting?
It allows for clarity within your spending habits, allowing yourself to see where adjustments may need to be made.
Give two examples of a need and a want?
Wants: Toys, Video Games, etc
What is the difference between gross income and net income?
Gross: Money earned before any deductions.
Net: The money taken home after taxes, expenses, and deductions.
What are the two ways that Methods of Payments can be categorized as?
Online (E-transfer, Debit) or Offline (Cash, Bank Drafts)
What are the 3 budgeting tools we spoke about?
Google Sheets/ Spreadsheet, Budgeting template, Apps
What are taxes?
Mandatory payments made to the government. This money is reinvested back into society to build things.
What is Financial Literacy?
The ability to understand and effectively use
various financial skills, including personal financial
management, budgeting, and investing.
What are all the different Methods of Payments we've talked about? (Hint: There's 6)
What does balancing a budget require?
Tracking expenses/income, making adjustments, setting realistic spending priorities, reviewing/ updating your budget regularly.
Mr. Mantelos mentioned a type of tax he pays on his home, what is that called? Define it!
The taxes homeowners in Canada pay on the assessed value of their home