Money Basics
What is money you earn called?
Income
If you buy candy instead of saving money, what is the opportunity cost?
Saving money
Is food a need or a want?
Need
You have $50 and spend $20. How much is left?
$30
You have $20. Buy snacks or save it. What is the trade-off?
Snacks vs saving
What is money you spend called?
Expense
Choosing one option means giving up another. What is this called?
Opportunity cost
Is a gaming console a need or a want?
Want
If your total budget is $100, can you spend $120?
No
Is it smarter to spend all your money right away?
No
What is it called when you keep money for later?
Saving
You buy a video game instead of new shoes. What did you give up?
New shoes
Why should needs come before wants?
Survival / basic living
Why is it important to track your spending?
Stay within budget / avoid overspending
Why might someone choose a cheaper option?
Save money / afford other things
What is a plan for how you use your money?
Budget
Why is opportunity cost important in decision-making?
Helps understand trade-offs / what you lose
Give one example of turning a want into a smarter decision.
(Example: saving instead of buying) Yes, a want can be a smart purchase if it fits within your budget and doesn’t take away from your needs or future goals.
You earn $200 and spend $150. How much should you save to be smart?
At least some (example: $50 or portion)
You choose a cheaper hotel to afford more activities. What is this called?
Trade-off
What is it called when you don’t have enough money for everything you want?
Scarcity
Explain one real-life example of opportunity cost.
(Open-ended response) Opportunity Cost – what you give up when choosing something else
Can a want ever be a smart purchase? Explain.
(Open-ended reasoning)
What is one strategy to stay within a budget?
(Example: limit spending, prioritize needs)
What is the BEST financial habit for long-term success?
Saving / planning / budgeting (justify)