Wants vs Needs
Buying shoes every check.
Is this a want or a need?
Want.
What is a checking account?
A bank account where you can deposit checks and withdraw your own money.
What is Money?
Money verifiable currency that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context.
Should your Wants Budget be 20% or 80% of your check?
20%
How to calculate : $300 check you multiple .2 = ?
What is a credit card?
A credit card allows people to purchase goods or services or withdraw cash by borrowing it from the bank. Using the card thus accrues debt that has to be repaid monthly.
What is a budget?
A budget is a calculation plan, for a defined period. To achieve a financial goal.
What is cheaper, ordering out every day or cooking?
It is cost effective to buy groceries and cook every day. It is most healthier and you save ~$15.00 per meal.
What is the difference between credit vs debit cards?
When you use a debit card, the funds for the amount of your purchase are taken from your checking account almost instantly.
When you use a credit card, the amount will be charged to your line of credit, meaning you will pay the bill at a later date.
What does it mean to “spend within your means?”
This means working with what you've got.
By cutting your expenses so you have money left over at the end of each month. By carefully budgeting your expenses, you should have a significant amount of money left over each month.
What are mandatory monthly expenses?
Groceries, rent, phone bill, light bill, water bill.. etc
How do you avoid Debt?
By paying back the money the bank lent each month.
Most common form of currency?
Digital
What is the 50-30-20 rule.
Split your income into three categories of spending: 50% on needs, 30% on wants, and 20% on savings.
How do you manage debt?
involves paying bills on time, avoiding high-interest debt, and setting a clear debt-reduction strategy.
How much does a car cost to buy & maintain?
Your first car as a teen should cost between $5,000-$10,000.
which would be $100-$300 a month.