Needs vs Wants
Is water a need or a want?
Need
What is money you earn called?
Income
You have $10, you spend $4. How much is left?
$6
You want to go to the mall but you only have lunch money. What do you do?
Pay for lunch - It’s a need
Is a PS5 a need or a want?
Want
What do you call setting money aside for later?
Saving
You earn $5 a week doing chores. How much after 3 weeks?
$15
You get $30 for your birthday. Should you spend it all or save some?
Save - Starting the habit early is always important
Need - but that doesn’t mean that a $1000 jacket is also a need.
What is a plan for how to spend your money?
A budget
You have $50. You save 10%. How much did you save?
$5
You borrow $20 from your mom - what is this transaction called
A loan
A Need - it is a responsibility that you take on yourself that is not mandatory
What is extra money a bank pays you for keeping your money there?
Interest
You earn $100 a month, spend $70. How much do you save in 6 months?
$180
You just got $50 from your grandma for your birthday. Your friend group is going to an amusement park next week — tickets are $40. But your mom says you need new school supplies and they cost $30. What do you do?
Buy the school supplies first because it’s a need. You only have $20 left so you can’t afford the amusement park
You have $200 left over - Rent is $100, your shoes are torn and new ones are $70, Loan payments are $20, and Lego is $30. What is getting skipped. HINT: You may not have money for everything
Rent, Loan payments and Shoes are the most important, save the remaining $10 for next month