Fixed and Variable expenses
What is an expense?
The amount of money you spend on something.
Based on our interactive journal. What is spending?
Trading money for goods or services.
If you borrow money and don’t pay it back, how might others feel?
Sad, disappointed, might not trust you later on, etc.
What was grandma's birthday present?
Musical bluebird earrings and glow-in-the-dark vampire teeth.
Each month, Karla's family pays $1500 in rent. They also spend money on groceries, but the amount changes every week.
In this scenario which is the fixed and variable expense and why?
Fixed expense: $1500 for rent (is constant)
Variable expense: Money spend on groceries (it changes)
What are groceries an example of?
Variable expense
Based on our interactive journal. What is saving?
Putting money aside from current income to buy something in the future.
What is a safe place to keep or money?
The bank
Who did Max and Ruby share their money with?
They give a gift to their grandmother.
Maya saves her money in a bank account, but Carlos keeps all of his money in his backpack.
Who is choosing the safest option? Why?
Maya because the money is being kept saved in the bank.
What are subscriptions an example of?
Fixed expense
Based on our interactive journal. What is sharing?
Give money to charity or other people.
Define lending money.
To give someone money for a short time, and they promise to pay it back.
Who saved money in the book, and for what purpose?
Ruby has “saved up a walletful of money for Grandma's birthday present.”
Every week, Amelia saves half of her allowance, but Brian spends it all.
After a month, who will have more money? Why?
Amelia will have more money at the end of the month because she is saving her allowance.
What is the definition of fixed and variable expenses?
fixed expenses: expenses where the amount stays the same.
variable expenses: expenses where the amount changes.
If you have $23 and decide to donate $5 to a charity.
How much money would you have left?
$18 left
Define borrowing money.
To take money from someone with a promise to pay it back later.
Who in the book spent money irresponsibly and what they purchased?
Max buying messy teeth and needing a laundromat depleting the funds.
Your cousin says, “I don’t need to add my money into a bank, I’ll just carry it with me.”
What problems could happen?
The money can be lost or stolen.
Give me an example of both a variable and a fixed expense.
variable: entertainment, clothing, electricity bills, etc.
fixed: car payment, insurance, rent etc.
You got $25 for your birthday and plan to spend $10, save $10, and share $5.
Does the plan you have spend all of your funds? Describe.
Yes, if I have $25 I have enough money to spend $10, save $10, and share $5 using all my money given.
You want to purchase something that costs $30 but only have $12. You want to borrow the rest.
How much would you have to borrow? What should you think about before borrowing?
You would have to borrow $18, before borrowing money we should think about if we can pay back in the future, how long will it take, and what if I can't pay later on, is it good taking the risk?
How much was grandma's birthday present?
$5 dollars total, $4 dollars the bluebird earrings and $1 the glow-in-the-dark vampire teeth.
How much would you have after seven weeks if you save $5 per week?
With that, what could you purchase?
After seven weeks I would have saved $35