Key Terms
An expense that stays the same every month, like rent or insurance.
What is a fixed expense?
True or False: The cheapest item always gives you the best value.
What is False?
If your monthly income is $1,800, how much should you save if you save 10%?
What is $180?
Checking prices at more than one store is called ____.
What is comparison shopping?
What happens to the value of a new car as soon as you drive it off the lot?
It depreciates.
A nonessential purchase, like going to the movies or buying video games.
What is a discretionary expense?
Spending a little more now to get a product that lasts longer is an example of thinking about ____.
Answer: What is value?
After savings and fixed expenses of $690, how much money is left from $1,800?
What is $930?
Name one way reviews can help you make a good purchase.
They provide information on quality, reliability, or satisfaction.
Why is it good to get pre-approval for a car loan before shopping?
So you know your budget and avoid overspending.
The loss of value of an item, like a car, over time.
What is depreciation?
A $15 shirt wears out in 2 months, while a $25 shirt lasts a year. Which is the better value?
What is the $25 shirt?
If groceries and transportation are $650, how much discretionary money remains from $900?
What is $250?
Why is it important to know a product’s warranty or return policy?
To protect yourself in case it breaks or doesn’t meet expectations.
Name three costs of owning a car besides the purchase price.
Insurance, gas, maintenance/repairs, registration.
An expense that can change monthly, like groceries or utilities.
What is a flexible expense?
List one reason it can be worth paying more upfront.
What is quality, durability, or warranty?
Name one trade-off you might make if expenses are greater than income.
Reduce entertainment, cut dining out, find cheaper options, etc.
You want headphones that cost $50 or $70. Give one smart way to decide which to buy.
Compare reviews, durability, warranty, or long-term use.
Apartment A is $800 with utilities included. Apartment B is $750 + $90 in utilities. Which is cheaper?
Apartment A, because it totals $800 vs. $840.
A seller’s promise to repair or replace an item within a certain period.
What is a warranty?
Explain why buying the cheapest option is not always smart.
Because long-term cost and durability matter more than the initial price.
Why is having a spending plan important?
It helps track expenses, prevent overspending, and reach financial goals.
Name two strategies for being a savvy shopper.
Comparison shopping, reading reviews, checking warranty, waiting for discounts/sales.
Why should you inspect an apartment before moving in?
To document conditions, avoid paying for damage you didn’t cause, and make sure it’s safe.