Vocabulary
The money you make or earn is called your __________.
income
How do we know if an item should be considered a high/low priority need vs a want?
High/low priority needs are long term, ongoing, and/or related to a goal. Wants are nice to have, temporary, and/or unnecessary.
What is the first step in money management?
The first step is to determine your needs vs your wants.
Looking at Abi's case study, which item would you classify as a universal need and why?
The travel cooler is a universal need for Abi because, with it, she will have access to food since her mother made it at home.
What you spend money on is called ___________.
expenses
Going back to Beto's case study, what are 2 items he should purchase and why?
I would suggest he purchase the jacket and the skillet because they are related to his goals and well-being.
What is the second step in money management?
The second step is figuring out income vs expenses.
Looking at Beto's case study, which one of his items would you say is a high priority need and why?
The skillet is a high priority need because it relates to a long term goal of his, to be a chef/caterer, and it will help improve his skills.
Name 3 universal needs
clean air, a place to sleep, food, clothes to keep warm and dry, etc.
Using the language from the unit, make 2 recommendations for someone who is looking to increase their income.
To increase your income, you could pick up a second job and you could do some extra chores for your neighbors.
What is the third step in money management?
The third step is to complete an income and expense log for your spending.
Name 3 essential items to your life and name why they are essential.
1. car - gets me to and from work
2. computer - work!
3. phone - communication
What is a surplus?
Surplus is when you have money left over after your expenses.
You find out that your friend has a shortage. Using the language from the unit, offer advice for how they can reduce their spending.
Since you have a financial shortage, you should find ways to reduce your spending, such as only purchasing universal needs and high priority needs. You could also eat out less.
What is the fourth step in money management?
The next step is to determine if you have a shortage or a surplus.
Using academic language in our books, explain the difference between wants and needs.
Needs are essential, and wants are unnecessary, but nice to have.
What is a shortage?
A shortage is when you you have spent more money than you have.
You are friends with a high school student. This friend of yours works a part time job and is saving up for a car. However, this friend also tends to always buy the latest videogames.
Using the language from the unit, give advice on how your friend can increase his income AND reduce their spending.
If you want to increase your income, you should pick up extra shifts at work or work longer than your usual shifts. To decrease your spending, you need to prioritize your wants and needs. For most people, videogames are not considered a need, but instead are a nice to have.
What is the last step in money management?
The last step in money management in finding ways to reduce your spending or increasing your income.
Thinking about your own life, explain whether a car is a want or a need for you.
Answers will vary
Name this song
Shut Up and Dance with Me - Walk the Moon