Needs vs Wants
What is the difference between saving money and investing money?
Saving money means the money is available for you to transfer to a checking account, invested money cannot be easily accessed
Which of the following is generally considered a need rather than a want?
Basic Food
What does it mean to borrow money?
Obtaining funds from another person with the intent of returning it
What is the difference between gross income and net income?
Gross income is before taxes
Net income is post taxes and other deductions
You deposit $200 into a savings account that earns 10% simple interest per year. How much interest will you earn after one year?
$20
Why can advertising influence the way people spend money
Influence what brand or product you may purchase
What is interest, and why does it matter when borrowing money ?
Interest is the percent that you will owe over the principal amount borrowed
A job pays $15 per hour. If you work 10 hours, how much is your gross pay before taxes or other deductions?
$150
Jordan earns $100 per month. He wants to save 30% of his income. How much should he save each month, and how much can he spend?
$30
If you leave $500 in an account earning 5% interest for one year, approximately how much money will you have at the end of the year
$25
A $100jacket is on sale for 25% off. What is the sale price?
$75
A person borrows $100 and must repay $110. How much interest did they pay?
ten percent
If your gross pay is $300 but $45 is taken out for taxes and other deductions, what is your net pay?
$255
A student has a monthly income of $200. Their expenses are $75 for transportation, $40 for entertainment, $25 for food, and $30 for other expenses. How much money is leftover?
$30
Why might someone choose a savings account that offers a higher interest rate
To make more passive income
Two headphones have similar features. One costs $40 and the other costs $75. What factors should you consider before deciding which one to purchase?
Quality
Brand
Why can making only the minimum payment on a credit card cause someone to pay much more than the original purchase price
Interest rates
Why might someone choose a job that pays slightly less but provides benefits such as health insurance or paid time off?
to save money in the long run, buying insurance on your own can cost a lot of money
You have $300 available each month. You want to save $100, spend no more than $75 on entertainment, and need $80 for transportation and food. You also want to buy a $120 pair of shoes. Can you afford the shoes without changing your plan? Explain your reasoning
No, after your planned spending you only have 45 dollars left
Account A offers 2% annual interest, while Account B offers 4%. You deposit $1,000 into each account and leave the money untouched for one year. How much more interest would Account B earn
Account A would have 20 dollars and account B will have 40 dollars
You have $100. You can buy a $90 pair of shoes that you really want, or a $50 pair that meets the same basic need and save the remaining $50. What are the financial advantages and disadvantages of each choice?
50 dollar pair - save money and still have shoes
90 dollar pair - fulfill your needs but save less money
You want to buy a $500 laptop. You can either save $100 per month for five months or borrow the $500 and repay $550 over time. Which option costs less, and by how much? What other factors might influence your decision?
The saving option will take longer to get your goal but you will not pay any extra
Borrowing the money will cause you get your laptop faster but you will pay more for the same laptop
Two jobs are available:
If you work 20 hours per week, which job provides the higher weekly paycheck? Which job might have greater overall value, and what additional information would you want before deciding?
Job A has a higher overall paycheck
Job B provides more benefits
you would want to know how much your health insurance costs and how quickly you accrue PTO