Vocabulary
Define debt
Debt is money that is owed
Explain the difference between needs and wants
Needs are things you must have, such as food. Wants are things you would like, but can do without.
Give an example of a want
Any expense that you might like but don't need to survive
Fixed or variable expense?
gas for your vehicle
gas for your vehicle is a variable expense
What are the three parts of a budget?
A budget includes income, expenses, and savings.
Define budget
A budget is a plan for spending and saving money
What's the difference between fixed and variable expenses?
Fixed expenses are the same from week to week or month to month. Variable expenses change from week to week or month to month.
Give an example of a need
Fixed or variable expense?
Rent
Rent is a fixed expense
What could you do if you have new expense?
Any reasonable answer -
make a budget transfer
take money out of saving
sell items
work more hours or get a second job
Define balanced budget
A balanced budget is a plan where income is equal to the sum of expenses and savings
Why do some people choose to save money?
You might save in case of an emergency or to save up enough money for a big expense.
Is rent a want or need?
Rent is a need
Fixed or variable expense?
Clothing
Clothing is a variable expense
What is interest?
Interest is extra money you need to pay the ender for loaning you money.
Define transfer
To transfer is to move money from one budget line to another, for example, from food to clothing
What are utilities?
Utilities are services such as electricity, gas and water.
Is recreation a want or a need?
Recreation is a want
Fixed or variable expense?
Car insurance
Car insurance is a fixed expense
What is an example of an unexpected expense?
Any reasonable response including some medical bills, car repairs, home repairs
Define predict
To predict is to make a guess about the future
What is an expense record?
An expense record is and organized chart used to list things you spend money on for a certain period of time, such as a week or a month.
Are basic foods a want or a need?
Basic foods are a need.
Fixed or variable expense?
Utilities
Utilities are a variable expense
What could you do if you receive extra money?
Any reasonable response including
-save the money
-pay extra toward a loan
-spend the money
-give the money to loved ones or charity