Spending & Saving
What is saving?
What is money you put aside into an account
What is investing?
What is the act of allocating money into assets with the goal of generating returns through income overtime
What is tax?
What is money collected by the government to pay for community services
What is superannuation?
What is money that employers put aside to help Australians save for retirement
What is a budget?
What is a plan for how you will spend and save your money over a certain time period
What is budgeting?
What is a plan that organises your spending
Name one type of investment
What is GST?
What is retirement?
What is the age or stage of life when most people begin using their superannuation savings so they don't work
What is scarcity?
What is the economic problem that occurs when there are limited resources but unlimited wants and needs.
What is a savings fund (or emergency fund)?
What is setting aside a small amount of money each week can help build this over time for emergencies or future purchases.
What is the stock market?
What is a place where people can buy and sell shares in companies
What is income tax?
What is people usually pay from the money they earn from a job
What is compound intreset?
what is the financial concept allows your super to earn returns on both your original savings and previous earnings
What is interest?
What is money earned from keeping savings in a bank account
What is Sarah has a budget of $500 each week. Spends half on needs, then spends half of the remaining money on wants. How much money would go into savings?
What is $125
What is the difference between risk and reward of shares?
What is risk is the chance of losing money, while reward is the potential gain from an investment
What is tax refund?
What is if you paid too much tax during the year, the government may give it back
What is an investment choice?
What is choosing between shares, property and cash inside your super fund
What is opportunity cost?
What is the value of the next best alternative that you give up when you make a choice.
What is living within your means?
What is the practice of spending less money than you earn.
What is the reason why investments usually have more risk than savings accounts?
What is because their value can go up and down, and there is a chance you could lose some of your money.
What is tax rate?
What is the percentage of money that a person or business must pay to the government as tax.
What is the power of compound interest over time?
What is a person who starts contributing to super at age 20 instead of 30 will usually have more retirement savings because of long-term financial effect
What is supply and demand?
What is two important concepts in economics that help determine the price of goods and services.