Needs and Wants
What is a need?
Something you must have to survive, like a place to live and enough food to eat.
Your monthly income is $950 and you spend $877.35 on necessities, how much money do you have left to purchase items that you want?
$72.65
What is the term used to describe an amount of money that is put into an account.
Deposit
What is a budget?
A list of planned expenses and income.
What does the term "Savings" mean?
This is money that is set aside for future use.
What is a want?
Something you might like to have, but you don't have to have right away. You can save to have it later.
What does earned income mean?
The wages or salary you receive from a job.
What is the term used to describe the amount of money taken out of the account?
Withdrawal
What does deficit mean?
Spending more than your income.
If your income every month is $800 and you want to save 10% of it, how much would you be saving in dollars?
$80 dollars
Name three items that you consider to be a "need".
1.clothes
2. apartment
3. food
Can you provide one example of unearned income.
1. Interest and Dividend Income
2. Rental Income
What is a credit union?
Non-profit community-based financial company where you can deposit your money to keep it safe.
What does "Surplus" mean?
It means you have money left over.
Name two ways you can save money.
1. When you shop for items like food or clothes, look for things that are on sale.
2. Shop at dollar stores to get a lower price.
3. Break expensive habits such as excessive clothes-buying, drinking, or smoking.
Name 3 items that you consider to be a "want".
1. video games
2. TV
3. Going to the movies
Name one good money habit and a bad money habit.
1. Good- Saving money
2. Bad-Spending money on wants rather than needs
What are three things you need to open a checking or savings account?
1. Social Security Card or Social Security number
2. Photo ID
3. Proof of current address
Explain why is it a good idea to make a budget.
To keep track of how much you are saving and spending.
You save $1 a day, how much money would you have saved in a year?
$365
When you are spending money, is it important to spend on things that you need first or is it important to spend on things that you want first? Explain.
It is important to let your needs come first because these are things you must have to survive.
Name one way to keep track of your expenses.
1. Creating a budget plan
2. Keeping receipts for anything that you buy with cash.
What is the difference between a checking account and a savings account?
A checking account is a service that gives customers a way to pay bills by check, and to deposit money. A savings account is a secure place to keep your money for future use.
If you find yourself spending more than you had for the month, what can you do to control your finances?
Look at where you over-spent and cut spending.
If you save $30 dollars each month for 3 years, how much money would you have saved?
$1,080