Finance Vocabulary
A plan for how to spend and save your money.
Budget
What is the biggest expense for many young adults?
Food
Medication
Entertainment
Food
What is the formula to calculate sales tax?
Purchase price × Tax rate
What is an important step to save money at the grocery store?
A. Go shopping when you're hungry
B. Plan meals for the week before shopping
C. Only buy brand-name items
D. Avoid making a list
B. Plan meals for the week before shopping
What is the act of buying something called?
A. Saving
B. Spending
C. Purchasing
D. Trading
C. Purchasing
Money you earn from work or other sources
Income
What are the two main components of a budget?
Income and Expenses
If the sales tax rate is 8% and you buy a $20 item, how much tax do you pay?
$1.60
What is a "trade-off" in budgeting?
A. Buying brand-name items instead of generics
B. Giving up one thing to afford or get something else
C. Splurging on items you want but don't need
D. Not sticking to a budget
B. Giving up one thing to afford or get something else
How can you ensure you’re getting the best deal when shopping?
Compare prices and quality.
Check for sales
Consider buying in bulk
Consider buying a store/ generic brand rather than name brand
Extra money added to prices that goes to the government
Taxes
Josh earns $700 a month from his job and $200 a month from dog walking. What is his monthly total income?
$900
What is tipping, and why is it important?
Tipping is giving extra money for services as appreciation, supporting service workers who rely on tips.
Name two budget-friendly foods that are also healthy.
A. Chips and soda
B. Oatmeal and rice
C. Ice cream and candy
D. Pizza and burgers
B. Oatmeal and rice
Why is it important to keep receipts?
A. To return or exchange items if needed
B. To remember what you bought and how much you spent
C. To track your spending for budgeting purposes
D. All of the above
D. All of the above
To return or exchange items if needed
To remember what you bought and how much you spent
To track your spending for budgeting purposes
Money that you owe to someone else
debt
How much does Sarah have left if she earns $500, spends $150 on groceries, $80 eating out, and $50 on her phone bill?
$220
Name one type of purchase that is often exempt from sales tax.
Necessities like food or medicine
What should you do before going grocery shopping?
Ex.
Check the food you already have.
Make a list
Decide your budget
If you go over budget at the grocery store, you should stick to your plan and pay for everything.
True or False
False (You should adjust by cutting back on unnecessary items.)
An agreement that allows you to borrow money to make purchases, which you will pay back later.
Credit
How do you know whether you are "within budget"?
Spending less than or equal to your income
You had a $45 haircut and want to tip 20%. What is your total bill?
Answer: $54
45 X.2 = 9.00
$45 + $9 tip=54
If a box of oatmeal costs $5.00 and provides 10 breakfasts, how much does each breakfast cost?
Hint 5.00/10=
How can you use shopping lists from previous weeks to help budget better?
A. To find and avoid buying the same items again
B. To estimate costs and plan future meals
C. To compare with your friend’s shopping list
D. To create a scrapbook of past meals
B. To estimate costs and plan future meals