NEEDS OR WANTS
A new PlayStation when your old one still works.
A want
Money you receive from working.
Income
Checking three shops before buying a new phone.
Smart
Money a business receives from selling goods or services.
Revenue/income
You earn $300 and spend $200. How much remains?
$100?
Groceries for the week.
A need
Money you put aside instead of spending.
Savings
Spending your whole pay the day you receive it.
Risky
Wages, rent and electricity are examples of these.
Expenses/costs
You save $25 each week for four weeks.
$100
Paying your electricity bill.
A need
A plan showing how money will be spent.
Budget
Keeping emergency savings.
Smart
A business buys something for $20 and sells it for $35. How much profit does it make?
$15
You buy five shirts for $20 each. What is your total cost?
$100
Buying $300 sneakers because an influencer wears them.
A want
Money that you owe another person, business or bank.
Debt
Borrowing money without knowing the interest rate.
Risky
Why should a business keep some cash instead of spending everything?
For bills, emergencies, unexpected costs or future opportunities.
You buy an item for $60 and sell it for $100. What is your profit?
$40
Give one example of something that could be a need for one person but a want for another.
Answer: Examples include a car, phone, laptop, etc.
Money left after a business pays all its costs.
Profit
A business owner spends every dollar of profit and keeps no money for future bills.
Risky
A business makes lots of sales but spends more than it earns. Is it successful?
No — high sales do not necessarily mean profit.
A business earns $1,000 but has $650 in expenses. What is its profit?
$350