Financial Basic
What is the ability to live comfortably without debt or financial stress.
Financial Freedom
What is a plan for managing income and expenses?
Budget
What is one way to avoid debt?
Live within your means and save before spending.
What is a smart way to spend money wisely?
Compare prices before buying, or wait for sales.
Your friend wants to buy a new toy but doesn’t have enough money. What is a better option than borrowing?
Save up for it over time.
What is the difference between saving and investing?
Saving is setting aside money, while investing is using money to make more money.
Name two benefit of budgeting
Helps save for important goals or prevents overspending
Money you owe to someone, or a company is called a?
Debt
What is the difference between needs and wants?
Needs are essential (food, shelter); wants are extra (toys, games).
You receive $20 as a gift. What are three smart things you could do with it?
Save part of it, buy something necessary, or invest in something that can grow your money.
Name two factor that influences how people spend money.
Advertising, peer influence, or trends
What should you do first when creating a budget?
List your income and expenses
Why is managing debt important?
Reduces stress and helps build a good credit score
What is setting aside money for future needs or goals?
Saving
You accidentally spend all your lunch money on snacks. What could you do differently next time?
Budget properly and separate money for meals.
What is it call when you develop responsible money habits, such as avoiding debt and unnecessary spending?
Financial Discipline
You receive $50 per month as an allowance. You want a $100 backpack in two months. How can budgeting help you get it?
By setting aside $50 each month, you can buy it without borrowing money.
Your older sibling has a credit card but only pays the minimum balance each month. Is this a good idea? Why or why not?
No, because interest will make the debt grow over time.
True or False – You should only save money if you have a job.
False, anyone can save money, even from allowances!
A family wants to go on vacation. Instead of using a credit card, they save money for six months. How does this help them?
They can enjoy their trip without worrying about debt later.
Your friend wants to buy a new phone, but they don’t have enough money. What are two smart ways they can get it without going into debt?
Save up over time or do small jobs to earn more money.
What is the 50/30/20 rule in budgeting?
50% needs, 30% wants, 20% savings.
What happens if you don’t pay back borrowed money?
You may owe more in interest, damage your credit score, or lose trust.
Imagine your school is raising money for a field trip. What are two ways you can save money to contribute?
Cutting back on snacks, setting aside part of an allowance, doing chores for extra money.
You love the latest trendy sneakers, but they are really expensive. What are two ways to afford them responsibly?
Save up over time, or find a similar but cheaper option.