Money Basic
This is something essential for survival, such as basic food, water or shelter.
What is a need?
Money that you earn or receive is known as this.
What is income?
Money set aside to pay for unexpected costs such as an urgent vet bill or car repair.
What is an emergency fund?
Putting money into something with the goal of increasing its value over time.
What is investing?
You want a new phone in six months. Between shares and a savings account, this is generally the more suitable place for money you will need soon.
What is a savings account?
A laptop is an example of this because it is a physical item that can be purchased.
What is a good?
Rent and a regular phone plan are usually examples of this type of expense.
What is a fixed expense?
Banks may pay you this for keeping money in a savings account.
What is interest?
In investing, this is the chance that you could lose some or all of your money.
What is risk?
Someone wants to grow their money over many years and is comfortable with its value rising and falling. Between saving and investing, this may better suit their goal.
What is investing?
Someone buys a new pair of shoes from a business. In the market system, the person buying the shoes is known as this.
What is a consumer?
Entertainment (e.g. going to the movies, concerts) and gifts (e.g. for birthdays, eid, lunar new year) are examples of what type of expense?
What is a variable expense?
Lending institutions may charge you this for borrowing money or using a credit card.
What is interest?
In investing, this is the possible gain you could receive.
What is reward?
Penelope wants to save more each month. Between water bills/gas bills and entertainment spending, this would usually be easier to reduce.
What is entertainment spending?
A supermarket can be one of these because it provides goods for people to buy.
What is a producer?
You suddenly receive a $400 vet bill. This type of savings is designed to help you pay it.
What is an emergency fund?
This card normally lets you spend money that is already in your bank account.
What is a debit card?
Savings accounts, term deposits and government bonds belong to this lower-risk investment category.
What are defensive investments?
Someone keeps some money safely in savings while investing some for long-term growth. Give one reason this could be a sensible strategy.
It balances risk and reward by keeping some money accessible/lower risk while giving some money the opportunity to grow.
A haircut, medical appointment and tutoring lesson are all examples of this.
What is a service?
You planned to spend $50 on groceries but actually spent $65. These two amounts belong to these two types of budget.
What are the expected budget and actual budget?
Paying bills and credit repayments on time can help you build this, while repeatedly missing repayments can damage it.
What is a credit score?
Shares and property are generally placed in this category because they aim for greater long-term returns but can rise and fall in value.
What are growth investments?
Company profits increase, investors become confident, and more investors want to buy shares. Explain what happens next - using the words "demand" and "share price".
Demand for the shares increases, which could cause the share price to rise.