Careers
This is the amount of money a worker earns before taxes are taken out.
Gross Pay?
This account is designed for spending money regularly.
Checking Account
Money set aside for unexpected expenses is called this.
Emergency Fund
What is a fixed expense? Give an example
Example: Rent, Subscription, Phone Bill
What is credit?
Credit is borrowing money with the promise of paying it back later.
A paycheck shows $2,000 gross pay and $1,600 net pay. What happened to the other $400?
Taxes and Deductions
Why might it be dangerous to keep all of your money at home?
Could be stolen, natural disasters, fire, not protected, inflation
What is the difference between a short-term and a long-term goal? Give an example of each
Short-term goals are reached within weeks or months (ex: New Sneakers)
Long-term goals are goals that likely take years to reach (ex: college, car a home)
What is a variable expense? Give an example
A variable expense is one that is likely to change from month to month
Example: Food, Entertainment, Clothes
What is interest?
The extra money charged for borrowing money without paying it back on time.
What are taxes used for?
Public Services, Roads, Schools, Libraries, Federal Employees, Medicare, Social Security
How can you keep your debit card and checking account information secure?
Never share your PIN, Never share passwords, use unsafe websites, respond to scam texts/calls
What does the "T" stand for in SMART goals?
Time-bound
A person earns $2,500 and spends $2,800. What budgeting problem do they have?
They are spending more than they earn. This means they need to shift some of their spending habits.
What is a credit score?
Why is it important?
A number that shows how responsibly someone manages borrowed money
Helps with employment, housing, approval and interest on loans, etc.
When choosing a career, what are some things you need to consider?
Lifestyle, salary, benefits, cost of living, education/certifications needed, etc.
What is overdraft in a checking account?
When you spend or withdraw more money than is available in your bank account, causing the balance to drop below zero.
Name one strategy for avoiding impulse spending.
What does the saving strategy "Pay Yourself First" mean?
Prioritize your long-term financial goals by putting a set amount of money into savings or investments immediately after getting paid, before you pay for any other monthly bills.
Why is it risky to only make minimum payments on a credit card?
Because interest continues to accumulate and the debt takes longer to pay off.
What are some features of a paycheck?
SSN, Gross Pay, Net Pay, YTD Gross Pay, YTD Net Pay, Hours worked and rate per hour, Pay Period, etc.
A bank offers:
What factors should you consider before choosing?
Fees, interest rate, account usage, and savings goals
Explain why a high-yield savings account is beneficial to have
A High-Yield Savings Account pays significantly higher interest than traditional bank accounts. It is ideal for emergency funds and short-term goals because it allows your cash to grow safely while remaining highly accessible.
During a budget simulation, an unexpected $500 expense occurs. What financial habit would best help manage this situation?
Having an emergency fund
You buy shoes with your credit card for $250 and can't pay the bill when it is due at the end of the month. Your bank charges 22% interest. What is your new balance owed?
250 x 0.22 = 55
250 + 55 = 305
You now owe $305