EARNING & INCOME
What do we call the money you earn from working a job?
Income
What is a budget?
A plan for how to spend and save money
Which is a need: food or video games?
Food
What is credit?
Borrowing money with the promise to pay it back later
What does it mean to save money?
Setting money aside for future use
What is the name for money you earn on a regular schedule, such as weekly or biweekly?
Paycheck
What is the main purpose of a budget?
To plan how you will use your money.
What should you do if your expenses are higher than your income
Cut spending or increase income
What happens if you don’t pay borrowed money back on time?
Fees, interest, damaged credit score
What is an example of a short-term financial goal?
A goal you can reach soon, like buying shoes or a game
What is the difference between hourly pay and salary?
Hourly pay is based on hours worked; salary is a fixed yearly amount
What does “minimum wage” mean?
The lowest amount an employer can legally pay a worker
Is a smartphone a need or a want for most people?
Want
What is interest?
Extra money paid for borrowing money
What is an emergency fund used for?
Unexpected expenses
What is net income?
All income left after taxes and deductions.
If your check is $2000 before taxes, and $1800 after taxes, the $1800 is your
Net income
Why is it important to know the difference between needs and wants?
It helps you make smarter spending decisions
True of false: If you borrow money from the bank, you will have to pay back more than you borrowed.
True
Why is saving money important, even if you don’t earn much?
Small amounts add up over time
Why is having more education or skills often connected to earning more money?
It can qualify you for higher-paying jobs
Your check is $1800 after taxes. Before taxes it was $2000. $2000 is your...?
Gross income
Name three things in your life that qualify as "needs"
Housing, food, transportation, healthcare, clothing
Why can credit be both helpful and risky?
It helps in emergencies but can lead to debt if misused
What money habit helps people avoid stress in the future
Budgeting and saving regularly