Money in Our Lives
What is the difference between a NEED and a WANT?
Need: Something that is a necessity, meaning you need it to survive.
Want: It is something that would be fun to have, but that you can live without.
BLANK is the ability that helps individuals make informed and wise decisions when buying goods and services.
A: Consumer Skills
B: Comparison Shopping
C: Budgeting and Planning
Consumer Skills
What is Savings?
Setting money aside before or after all expense are paid for to use in the future
*BLANK* funds that people and businesses/companies pay to the government.
A. Checking
B. Taxes
C. Income
D. Savings
Taxes
What is the Main Goal of investing and increasing wealth over time?
Beat Inflation
BLANK is about making choices when you can't have everything you want at the same time.
A: Need
B: Opportunity Cost
C: Tradeoffs
Tradeoffs
What is Comparison Shopping?
Evaluating multiple options before purchasing a product.
True or False: A budget is an estimation of income and expenses over a set time. It is not edited or re-evaluated periodically once a budget has been established.
False
True or False: GROSS PAY is the money you get to keep and take home to pay for expenses. NET PAY is all the money you earn at your job. But you do not keep all your gross pay, your employer will take money out to pay for taxes and benefits.
False
What’s the difference between a BULL market and a BEAR market?
A BULL market: prices going up, economy doing well. A BEAR market: prices going down, economy slowing down.
True or False: Different cultures may have different views on money. Some cultures emphasize saving and being frugal, while others may value spending for enjoyment or sharing wealth with others.
True
BLANK: A secure place to store money and make transactions. It allows unlimited access to your money to cover your everyday spending.
A: Saving Account
B: Coupon Book
C: Checking Account
Checking Account
What is the difference between Simple Interest and Compound Interest?
Simple Interest: Earned only on the original amount saved
Compound Interest: Earned on both the original amount and previous interest.
BLANK is a form of borrowing money where you pay back the principal and interest.
Credit
Bonds: you lend money to a company or government (BLANK) for a set time, and they promise to pay you back with regular interest payments(coupons) and return your original money (principal) on a specific date (BLANK).
Bonds: you lend money to a company or government (borrower) for a set time, and they promise to pay you back with regular interest payments(coupons) and return your original money (principal) on a specific date (maturity).
True or False: Financial decision-making is rational.
False: Financial decision-making is NOT rational.
What is the name of the $35.00 fee that banks charge consumers who spend more money than they have in their accounts?
Overdraft Fee
What is the name of the money the bank pays you for keeping your money in a savings account
Interest
How are credit scores like grades on a report card?
Both show your progress and can impact your future opportunities.
BLANK means not putting all your money in one place. Instead of investing in just one company or type of investment, you spread your money out across different stocks, bonds, or industries.
Diversification
Can you list 5 Money Messages Influences that shape how people view and interact with money.
1. Family
2. Friends
3. Personality
4. Society
5. Community and Culture
6. Religion and Spiritual Beliefs
7. Media
What is the difference between a Commercial Bank and a Credit Union?
Commercial banks are institutions that are for profit and make a financial gain from their consumers.
Credit Unions are non-profit institutions that are owned by their members and consider their members' needs.
What are the 4 different Saving Methods we discussed in class?
1. Paying Yourself First
2. Zero-Based Budgeting
3. Cash-Envelope System
4. 50/30/20 Rule
Why is it best to have a PRIME credit score?
It helps you get lower interest rates on loans and credit cards.
What are the two platforms investor can buy stocks?
New York Stock Exchange and NASDAQ