Vocabulary
Adding or putting money into an account.
Deposit
You should always spend more money than you have.
FALSE! Spending more than you have means you are going into debt.
What are the two main types of bank accounts?
Chequings and savings
Julia makes $100.00 babysitting and $50.00 for household chores each month. What is her total monthly income?
$150.00
What is the formula to find simple interest?
I=PRT
Taking money out of an account.
Withdrawal
Interest is always a good thing.
FALSE. On a credit card it is a bad thing.
Who should know your ATM PIN?
Only you should know your PIN.
David's expenses for each month are $40.00 for his phone, $20.00 for eating at restaurants, and $30.00 for savings. What are his total monthly expenses?
$90.00
What do the following letters stand for in the formula for simple interest? I=PRT
I: Interest P: Principal R: Rate T: Time
Fixed expenses include things like rent.
TRUE. These are expenses that (for the most part), don't change from month to month.
What is a chequing account?
Money kept for every day expenses.
Sharon's montly income is $200.00. How much does she make in 4 months?
$800.00
Find the interest: P: $5,000. R: 5% T: 4 Years
*remember the rate must be written as a decimal
$1,000.00
There is only one type of budget.
FALSE! There are many types - The envelope budget, 50-30-20, etc.
Why is it important to make a budget?
A budget helps plan your spending.
Kristopher's income each month is $1999.00. His expenses are $550.00 each month. What are his savings for each month?
$1449.00
P: $2,400 R: 6% T: 20 Years
*remember the rate must be written as a decimal
$2,880.00
Variable Expenses change from month to month
TRUE! These are expenses that may change based on other factors.
Why is it important to be careful when using credit cards? Explain your answer.
Credit cards are good as they allow you to make larger purchases, but if you don't pay them off in time you can go into debt - which also adds interest and impacts your credit score.
Briana saves $20.00 each month to buy a computer. The computer costs $500.00. How many months will it take for her to save enough money?
25
Paula deposited $10,000 into a savings account. The interest rate was 5.5%. How much interest will she have in 15 years?
*remember the rate must be written as a decimal
$8250.00