Budgeting Basics
This is a plan for how you will spend and save your money
What is a budget?
Money set aside for future use is called this.
What are savings?
Borrowing money that you promise to pay back later
What is credit?
A place where you can deposit and withdraw money.
What is a bank?
Comparing prices before buying something is called this.
What is comparison shopping?
Money you earn from a job or allowance is called this
What is income?
This is money earned on your savings from a bank.
What is interest?
Money you owe to someone else.
What is debt?
An account used for everyday spending and transactions.
What is a checking account?
Money taken off the original price of an item.
What is a discount?
These are regular payments like rent, phone bills, or subscriptions.
What are expenses?
A place where people keep money safely and earn interest
What is a savings account?
A card that allows you to borrow money to make purchases.
What is a credit card?
This card is linked to your bank account and uses your own money.
What is a debit card?
A plan to avoid buying things you don’t need.
What is budgeting (or self-control in spending)?
This type of expense stays the same each month (like rent).
What is a fixed expense?
Putting money into something with the hope it grows over time.
What is investing?
A number that shows how trustworthy you are with borrowing money.
What is a credit score?
A machine where you can withdraw cash and check your balance.
What is an ATM?
Buying something without planning ahead is called this.
What is impulse buying?
This type of expense can change each month (like food or entertainment).
What is a variable expense?
This is the idea of earning interest on both your money and the interest already earned
What is compound interest?
This happens when you don’t pay back borrowed money on time.
What is defaulting?
This protects your money in a bank up to a certain amount.
What is FDIC insurance?
The total cost of an item after taxes are added.
What is the final price (or total cost)?