Spending/Saving
What is spending?
Using money to purchase goods, services, or fulfill needs or wants.
What is a want?
A want is something you do NOT need.
What is budgeting?
Budgeting is how you plan to use up your money.
What is debt?
When you spend more money than you have
What is opportunity Cost?
The amount you lose when you choose one thing over another
What is saving?
Setting aside some of your money for financial goal.
A need is something you DO need.
If you use a budget then you won't...
Go into debt
What can you do to avoid debt
Budget
What is the opportunity cost of watching a movie instead of studying?
If you have $43 and you spend $3 on gum and $10 for a burger and fries, how much is left?
$30
If you have $30 to spend on either food or new headphones, which one would be financially smarter?
FOOD
When should you budget?
Any time you have any money
If you have $100 on a debit card and you spend $200 how much debt are you in.
$100
Why should you consider opportunity cost when buying something?
You should consider it because you may want or need that money later to spend on something else
When spending your money, always think about...
1) Don't spend more money than you have
2) Think before you buy something
3) Cheaper option
Name 3 wants
anything that you want
If you are given $500 what is the first thing you should do?
You should budget it so you have enough money for all your expenses
What should you do when your in debt?
You should try to pay back the money as soon as you can without going into more debt.
If you do your history homework and not your math homework what is the opportunity cost?
The math homework.
Who is on the $5 bill?
Abraham Lincoln
Name 3 needs
Food, Water, Shelter (anything you need)
Why should you budget?
So you can keep track of all your money
What happens if you go into too much debt?
You go bankrupt
Name an example of opportunity cost?
An example is choosing math homework over history homework