Interest & Growth
This is the cost of borrowing money or the money earned when savings or investments grow.
What is interest?
Jamal pays for groceries using a card that immediately removes the money from their chequing account. This method of payment is being used.
What is debit?
Lying, deceiving, or tricking others for unlawful financial gain is known as this.
What is Financial Fraud?
A household earns $4,200 per month and spends $3,600. This describes this type of budget.
What is a Balanced Budget??
Social-media ads can encourage consumers to make this kind of purchase that they had not originally planned.
What is an impulse or unplanned purchase?
This type of interest is calculated only on the original principal amount.
What is simple interest?
Making only these required payments on a loan or credit-card balance generally makes repayment take longer and increases the total interest paid.
What are minimum payments?
This security method requires two different forms of verification before allowing access to an account.
What is two-factor authentication?
Fatima changes how she spends her own monthly income so she can save for a vacation. This is the type of budget she is adjusting.
What is a personal budget?
This type of program rewards repeat customers with points, discounts, free items, or exclusive offers.
What is a Loyalty program?
This type of interest is calculated on the original principal and previously accumulated interest.
What is compound interest?
Paula buys a $900 laptop using money from a financial institution and agrees to repay the money later.
What is credit?
Money received from employment, services, or investments is called this.
What is income?
These are the items or services that someone spends money on.
What are Expenses?
Consumers should check the fine print for these additional charges that may make a deal more expensive than it first appears.
What are Hidden fees (or Hidden costs)?
Usually expressed as a percentage, this determines how much interest is earned or charged on an amount of money.
What is an interest rate?
High borrowing costs, additional fees, and very short repayment periods are three major risks associated with this type of loan.
What is a payday loan?
Dante plans to make $300 this winter by shovelling driveways. This is this type of financial goal.
What is an earning goal?
Kareem and Nadia combine their income and expenses after getting married. They are creating this type of budget.
What is a household budget?
Before making a purchase, a smart consumer evaluates whether the item is a "want" or one of these.
What is a Need?
Compare simple and compound interest. Explain the key difference in how each is calculated over time.
Simple interest is calculated only on the original principal; compound interest is calculated on the principal plus previously accumulated interest.
Compare credit and debit. Explain where the money comes from and whether it must be repaid.
Credit uses borrowed money that must be repaid; debit uses money already in your bank account.
Compare an earning goal and a saving goal. Explain the difference and give an example of each.
An earning goal focuses on making money; a saving goal focuses on setting money aside for future use.
Compare a budget and a financial plan. What does each one focus on, and how are they connected?
A budget manages income and expenses over a period of time, while a financial plan identifies financial goals and the actions needed to achieve them. A budget can be one tool used within a larger financial plan.
Compare a need and a want. Explain how confusing the two could affect someone's spending decisions.
A need is essential, while a want is desirable but not essential; treating wants as needs can lead to unnecessary spending.