Spending
What is spending?
Using money to purchase goods and services.
What is budgeting?
A plan for your money.
What is a bank used for?
To safely store your money.
What does investing mean?
Putting money into something to try to make more money.
Name one way you can get money.
Allowance, a job, or a gift.
What is an example of a need
Food,water,shelter, etc.
What are the 3 groups in the three-sock system?
Save, Spend, and Share.
What is your account balance?
The amount of money in your account.
Do stock prices always stay the same?
No, they go up and down.
What happens to your balance when you put money into your account?
It goes up.
What is an unplanned purchase?
Buying something that wasn't part of the original plan.
What does an expected budget help you do?
Predict how much money you will earn and spend.
What is a savings account for?
Saving money for later.
When you buy a share of a company, what do you own?
A small part of the company.
What is a withdrawal?
Taking money out of your account.
What are two reasons people make impulse purchases?
Emotions, advertisements, sales, or excitement about getting something new.
What are the 3 types of money goals?
Short-term, mid-term, and long-term.
What is interest?
Money the bank pays you for keeping money in your account.
What can happen when an investment goes up?
You can make a profit.
What happens when you spend money from your account?
Your balance goes down.
Why should you track small purchases?
Small purchases can add up over time and help you understand your spending habits.
What should you spend money on first when budgeting based on priority?
Needs first, then wants, and save whatever is left. Money you owe someone should be at the top of the list.
With a debit card, are you using your own money or borrowed money?
Your own money.
What is diversification?
Spreading your money across different investments to lower your risk.
What are the two sides of investing?
Risk and reward.