Budgeting
What are 2 of the most important parts of a budget? (Hint: money received and money spent)
Income and expenses.
What is the formula for simple interest?
Simple interest=P x R x T
True or false: Credit cards have high interest rates
True. Average is 19%.
Why is it important to set financial goals?
To plan for the future and not live beyond means, manage money, etc.
What is a fixed expense? Can you name an example?
A expense that has an amount that does not change. Ex. cell phone bill, car payments, rent, etc.
Calculate using simple interest: $3000 deposited at 3.95% per year for 5 years
$592.50
True or false: debit cards have to be paid back
False.
What does it mean to build credit?
Building credit means that you pay off your credit card balance on time. This helps show financial institutions and banks that you are trustworthy because you can pay off your debts. This is useful if you ever need a large loan.
What is a variable expense. Can you give an example?
A variable expense has an amount that does change. Ex. utilities, groceries, etc.
Write 9.85% as a decimal.
0.0985
What are some risks of credit cards?
Failing to pay it off can ruin credit score, financial penalties, high interest rates, financial stress, etc.
Maddy's gross monthly income is $5,540. Her net income is $4,130. How much money was withheld for deductions
$1410
Why is budgeting important.
To keep track of spending, etc.
Calculate using simple interest: $1000 deposited at 2% per year for 6 years.
$120
Why might crypto be risky?
It can be hacked or stolen.
What is the difference between gross and net income?
Gross-before deductions, Net-after deductions