Definitions
What is money given by an adult to a young person to help them learn how to save and spend wisely.
allowance
A place where people keep their money safe by opening an account.
Bank
Savings account
A plan that you set up to see how much money you are spending, saving and later on growing.
Budget.
James wants a Big Mac meal with fries and a McFlurry, which will cost about $10 or more. However, he also needs money for bus fare. Should he spend his money on a nice meal, or prioritize his need for transportation?
need
Learning to use money wisely means saving some of it, not spending too much, and keeping control of your money.
Money Smart (Financially literate)
It’s an account you put money into, spend from whenever you want, and never have to pay back.
Checking Acccount
This is money you save for surprises or unexpected problems.
Money for emergencies
Is it true that most people use the 50/30/20 rule when making a budget? That means 50% of your money goes to needs, like food and phone bills, 30% goes to wants, like clothes, video games, or going out with friends, and 20% goes to savings for things like a car, travel, or headphones.
True
If you want to buy a new PS5 game that costs $60 and your monthly allowance is $20, how can you budget to afford the game?
Save your $20 allowance each month. In three months, you’ll have enough for the game.
Skip buying snacks or small items for a while and save that money instead.
Put your allowance in a jar or envelope labeled “PS5 Game” so you don’t spend it by accident.
Ask for the game as a birthday or holiday gift and save your allowance for something else.
Look for the game on sale so you might not need the full $60.
Money that you borrow and you need pay back.
credit
It usually takes $25–$50 to start, and you’ll need your own bank account to keep it safe!
Starting money (initial deposit)
Required payment to keep a service Example (phone, Netflix and gym)
Bill (Fixed Expense)
A goal you are working towards over a long period of time.
Long term goal
Why do you think that knowing how to use money is important ?
Track how much money you spend so you don’t run out.
Save up to buy things you really want.
Plan ahead for emergencies, like when something unexpected comes up.
Have more freedom to do fun things without worrying about money.
Money that you borrow but you did not pay back. It can grow over time.
debt
What documents will you need when opening a bank account?
Social security, Identification card
A goal that you create over a short period of time.
Short term goal
After you pay all of your services like your phone, bus fare, and gym, and of course, you would put some in savings, you are left with this money, what is it called
Left over money, Take home Pay (net income)
If you are hanging out with a friend and every time you hang out, they want to go out to eat or do something that costs money, and you would like not to spend money, how would you handle this friendship? Give me examples.
Tell your friend we can do something that doesn't cost money
planning ahead of time
not going every single time
knowing your limits
Money you receive from many sources, such as a job, allowance, and community work or chores.
Income
This is money that comes on paper. To use it, you need to put it in your bank or go somewhere to get cash
Check
There should be no wants in your budget if you are saving for a big purchase. True or False
False
When people trade things or services instead of using money.
Bargain,Trade,Exchange System (Barter system)
Tyrse really wants to go to the movies, but he also needs money for the bus and to pay for his permit. If he spends money on the movie, he won’t have much left for these important things. He gets paid next week, and he could ask a friend for help, but he doesn’t want to. Work has been really stressful, so he wants to relax, but he also needs to make sure he has enough money for school and work next week.
Should Tyrse focus on what he wants or what he needs?
Bonus: Can you think of a way he could still go to the movies without missing what he really needs?
Take Care of Needs
Go to the movies next week
Ask best friend and pay when he gets money next week
Instead of going to the movies using the left over money and going to Dollar Tree or a convenience store and getting popcorn and snacks and having the movies at home.