Budgeting
What is a budget?
A plan for managing your income and expenses.
What is a savings account used for?
To save money for future use or emergencies.
What is a paycheck?
A payment you receive for the work you've done.
What is investing?
Putting money into something with the goals of making a profit or growing your money over time.
What is a checking account used for?
To store money that you use for everyday expenses and withdrawals.
What is the term for money set aside for future expenses in a budget?
Savings.
What is the name of the extra money the bank pays you for keeping your money in a savings account?
Interest.
What is the term for the money taken out of your paycheck for things like taxes or insurance?
Deductions.
What is a stock?
A share of ownership in a company.
What is a debit card?
A card that allows you to withdraw money directly from your checking account.
What is the term for the money you earn after taxes are taken out?
Net Income.
True or False: You can withdraw money from a savings account anytime without any limit.
False.
What does "Gross income" refer to?
The total or amount of money you earn before any deductions.
What is the risk when investing in stocks?
The value of the stock can go down, causing you to lose money.
What is a ATM?
An automated Teller Machine, where you can withdraw money, check your balance, or deposit money into your checking account.
Name one way to track your budget.
Using a spreadsheet, an app, or writing it down.
What is the difference between a savings account and checking account?
A saving account is for saving money and earns interest, while a checking account is for everyday spending.
True or false: Your net income is the same as your gross income.
False.
What is a mutual fund?
A type of investment where many people pool their money together to invest in a variety of stocks and bonds.
What is the term for when you spend more money than you have in your checking account.
Overdraft.
If your monthly allowance is $100 and you want to save 20%, how much will you save?
$20.
If your savings account earns 2% interest and you save $500, how much interest will you earn in a year
$10.
If you earn $800 a week and your tax deduction is 20%, how much money will you take home after taxes.
$640.
True or false: Investing in stocks always guarantees you will make money.
False.
True or False: You can earn interest on the money in a checking account, just like a savings account.
False