Budgeting
What is a budget?
A budget is an estimate of income and spending for a period of time.
What type of account is best for day to day purchases?
A chequing account
What is savings?
When you don't spend all your money straight away, putting it away so you can spend it later.
True or False: You were born with a fixed set of skills and talents that will never change.
False
What is one building block of a budget?
1.Total take-home income for the month
2.Total expenses for the month (fixed and variable)
3.Subtract expenses from income
What versatile machine lets you conduct banking transactions--like withdrawals--without needing to see a person?
An Automated Teller Machine (ATM)
What is interest?
The way a savings accounts earns money
True or False: People with growth mindsets more often achieve what they set their mind to
True
What is the money someone makes from doing a job called?
Income
What type of savings usually consists of liquid funds that accumulate small amounts of interest for use in 2-12 months?
An emergency fund
What percentage of your savings should you aim to put into savings?
10-20%
Which mindset is more likely to try something new when one approach fails?
A growth mindset
What are some examples of expenses?
Rent, utilities, groceries, eating out, bus fare, clothing etc
What are two documents that are required for opening a bank account?
A social insurance number (SIN) and an ID
What are the three types of savings accounts we talked about?
Emergency funds, short term savings, and long term savings
What's a useful and short phrase to practice saying when developing a growth mindset?
"Not yet" or "... yet!"
What is the difference between a need and a want?
1. Needs are things you must have to live and be healthy. Like: food, water, a place to live, clothes, and going to the doctor.
2. Wants are things you like to have, but you don’t need them to live. Like: toys, video games, candy, or going to the movies.
What might impact your choice of where to open a bank account?
Any of the following: fees, benefits (services), convenience, ratings and/or risk.
What kind of interest is added to the principal and then calculated on that new amount?
Compound interest
True or False: Anyone can develop a growth mindset?
True