Lesson 1-2
What is the difference between a need and want
A need is something that you cannot live without and a want is something that you would like to have, but can live without
What is a budget?
A spending plan to help manage your money
A loan from the bank
What is credit?
You have to pay a bill through the mail. Which payment method do you use?
What is a check?
What is the money called that you do not plan to spend?
Savings
What is a spending limit?
Restriction on the amount of money a person can spend
What happens when you use a debit card to pay for an item at a store?
The money comes right out of your bank account.
Which amount is higher on a paycheck, your gross pay or net pay?
Gross Pay
What is a trade-off?
Deciding to spend (or not spend) money on one thing instead of another
What is a paystub?
Record of how many hours you worked, how much you get paid, and your deductions. It is attached to your paycheck
A plastic card that takes money out of your checking account
What is a debit card?
Sarah earns $10 per week from allowance. She loves to draw and wants to participate in an art class after school. The art class starts in 4 weeks and costs $40. Sarah also wants to go to the movies next week and the cost is $20. What is the trade-off if Sarah decides to take the art class?
She will not be able to go to the movies.
What is an example of a short-term savings goal?
Answers may vary. (something not too expensive)
What is a deposit?
If you write a check, is it a deposit or a withdrawal from your account?
Withdrawal
Jay wants to buy a new pair of Nike sneakers. His grandmother gave him 75 dollars for his birthday last week but the shoes cost $150. If Jay saves his allowance of $15 a week, would this be a short-term savings goal or long-term savings goal?
Short-term
What is an example of a long-term savings goal?
Answers may vary (something expensive)
What is a withdrawl?
When you take money out of a bank account.
What is when you swipe a credit card to pay for an item?
What is when you swipe a credit card the following happens:
1. The credit card company pays the store
2. Then the credit card company charges you.
3. You pay them back the money with interest
Name five types of information that should be kept personal.
·Birth date
·Phone number
·Home address
·Bank account number
·A parent’s credit card number
·Passwords
·School name and address