Scenarios
Lara wants to start budgeting! What are some things she should keep in mind when setting up a budget? (Needs, wants, etc.)
Income, specific needs, savings towards goals, estimated expenditures
Savings account that can be accessed by both parent and child, with more debit card access to the child
Joint Savings Account
things adults need to budget for
Healthcare, food, gas
Variable expenses _____ from month-to-month, year-to-year, etc.
change
The S+P 500 consists of how many of the largest companies?
500
Megana earns $600 from her part-time job and spends $500 a month on takeout. Why can this be bad in the long run?
Hurts health, financial health, and you only have $100 left to spend on other needs/emergencies
This type of account often allows for unlimited transactions, including writing checks and using a debit card.
Checking Accounts
things that teens may start to save/budget for
College, car, hangouts
You spent over your limits for wants this month, so you should _____ your budget for next month.
readjust
Name 2 things that affect a stock price
supply/demand, inflation and interest rates, current events, sentiment
At a dinner party with your friends, you eat $80 worth of food but only set aside $60 for food, what should you do next time?
A. Ignore that you didn't pay your $20 worth
B. Don’t attend a dinner party again
C. Put aside an ample amount of money and make sure you can cover the expense beforehand.
D. Ask your friends for $20 but don’t give it back
C
This type of savings account is known for its safety and liquidity, allowing depositors to easily access their funds while earning a modest interest rate.
Savings Account
ways teens may make money
Chores, part-time jobs, sell old items
Someone who doesn’t work at all but has money that is continuously generated utilizes the benefits of ___.
passive income
Strategy where you buy + hold stocks for a long period of time
Buy + hold strategy
Angela sets her monthly budget to $500.
$200 eating out
$80 entertainment
$20 transportation
$75 shopping
How much does she have left to spend on other things?
$125
It allows you to “lock” your money for a specified period of time for higher interest but can have penalties for withdrawal before the end of the term.
Certificate of Deposit
things to take into account when budgeting outside of needs and wants
emergency money, retirement fund, college fund
A person is living ___-to-_____ when their paycheck is used to cover their necessary expenses with no money left over.
paycheck-to-paycheck
Strategy when you expect stock prices to fall
Short selling
Connor wants to start his own emergency fund! Approximately how many months of basic living expenses should he cover in this fund?
At least 3-6 months worth of money
This type of account typically offers a higher interest rate in comparison to others and often requires a higher minimum balance.
Money Market Account
types of loans
Student loans, credit cards, mortgages, auto (car) loans
Experts recommend that you keep enough money in your emergency fund to cover at least __ to __ months' worth of living expenses.
3, 6
The right to buy an asset at $X price within Y time (Hint: It’s a type of option)
Call option