Basic concepts
What branch of economics studies how individuals, families, or businesses make decisions about investing, spending, or saving?
Finance
What does saving mean?
setting aside part of current income to secure the future
What is the first step in creating a budget?
Set financial goals
What is the purpose of investing?
grow your money over time
What type of finance focuses on analyzing the behavior of individuals to manage money independently?
Personal Finance
Why is becoming aware of saving important?
it helps maintain good financial health
What are the three categories in the 50-30-20 budgeting rule?
needs, wants, and savings/investments
Name the three types of financial goals.
short-term, medium-term, and long-term goals
Why is personal finance important for individuals and families?
their well-being and economic stability
What percentage of income is recommended for saving or investing according to the 50-30-20 rule?
20%
What does the “50%” in the 50-30-20 rule represent?
Needs
What is a key difference between saving and investing?
saving secures the future while investing grows wealth
Name one key goal of personal finance.
financial goals, control of spending, saving, or economic peace of mind
True or False: Saving only benefits individuals in the short term.
False
Name one thing you need to create a budget.
assets, actual savings, or debts
Why is it important to give priority to financial goals when budgeting?
ensure money is allocated efficiently toward achieving those goals
What does personal finance take into account when managing money?
financial goals, risks, and future events?
Name two benefits of consistent saving.
financial security and the ability to reach financial goals
What is the purpose of a budget?
to control spending and ensure money is allocated to goals
What is economic peace of mind?
is the state of financial stability and lack of financial stress