Budgeting and Spending
What is a budget?
What is a budget?
What is income?
Money you earn.
What is saving?
Putting money aside for later.
What is a smart purchase?
A purchase that is needed and fits your budget.
What is income tax?
Money taken from your paycheck to fund government services.
Why is it important to track expenses?
So you know where your money is going.
Name one way people can earn money.
Getting a job, starting a business, or doing chores.
Why is it important to have savings?
It helps you in emergencies or for big purchases.
Why is it important to compare prices before buying?
To find the best deal and save money.
What does it mean to invest money?
Using money to make more money, like in stocks or real estate.
What is the difference between fixed and variable expenses?
Fixed expenses stay the same; variable expenses change.
What is the difference between a salary and hourly wage?
Salary is a set amount per year, hourly is based on hours worked.
What is an emergency fund used for?
Unexpected costs like car repairs or medical bills.
What is an example of an impulse buy?
Buying something without planning, like candy at checkout.
What is a bank account used for?
Storing and managing money safely.
Give an example of a need and a want.
Need: Food, Want: Video games
Why is education important for a career?
It helps you learn skills to get better jobs.
Name one way to make saving money easier.
Set a savings goal or automate savings.
How can advertising influence what we buy?
It makes products look exciting or necessary.
What is interest, and how can it help you save money?
Extra money earned on savings over time.
What happens if you spend more money than you earn?
You go into debt.
How can having a career plan help you in the future?
It helps you set goals and prepare for success.
What does "pay yourself first" mean?
Save money before spending on other things.
What is opportunity cost?
The value of what you give up when making a choice.
What is the purpose of a credit score?
It shows how responsible you are with borrowing money.