Money Matters
The money you earn from a job or allowance.
What is income?
A safe place to keep your money that earns interest.
What is a savings account?
The difference between needs and wants.
What are necessities vs. things that enhance your lifestyle.
Something you can buy that you can touch, like a phone.
What is a good?
The extra money a bank pays you for keeping money in a savings account.
What is interest?
A plan that helps you manage income and expenses.
What is a budget?
The account you use to pay bills and make purchases.
What is a checking account?
A strategy where you put money aside before spending.
What is saving or investing?
Something you pay for that someone else does for you, like a haircut.
What is a service?
The period in life when you stop working and rely on savings, investments, and benefits to cover expenses.
What is retirement?
The money you spend on things like rent, food, and bills.
What are expenses?
A card that lets you access money from your checking account.
What is a debit card?
The act of tracking your expenses to control spending and avoid debt.
What is budeting?
If Mr. Salisbury has $1,050 in his checking account, and makes a deposit of $35 on Monday, and then a withdrawal of $65 on Tuesday, his balance would be this on Wednesday.
What is $1,020?
A type of income based on hours worked.
What is wage?
Money left after paying for needs, which you can spend or save.
What is discretionary income?
An expense where the amount changes monthly.
What is variable?
An example of an expense you must pay every month.
What is rent/mortgage, utilities or groceries?
If Mr. Salisbury followed the 50-30-20 rule, 30% of his income would go towards this.
What are wants?
A long-term place to keep money that earns more interest than a savings account.
What is an investment account?
The three main categories of a budget.
What are income, savings, and expenses?
A document showing all transactions in your bank account and your current balance.
What is a bank statement?
The term for making smart financial choices to avoid debt.
What is financial responsibility?
Signing the back of a check to authorize it for deposit or cashing.
What is endorsing a check?
The term for when prices go up over time, making things more expensive.
What is inflation?