Budget Basic
What is a budget?
A plan for how you will spend and save your money.
What is revenue?
Money a business makes from sales.
What’s the main difference between using a credit card and cash?
Credit is borrowed money, cash is your own.
You get $50. Should you save or splurge if your goal is to buy a $100 hoodie next week?
Save.
What’s the difference between saving and investing?
Saving is setting money aside with little risk; investing is putting money into assets for potential growth but with risk.
Name three common categories in a personal budget.
Housing, Food, Transportation
What is profit?
Revenue minus expenses.
What is interest on a credit card?
Extra money you pay for borrowing if you don’t pay in full.
Name a situation where it’s okay to splurge.
Special occasion, self-reward after savings goal, etc.
You want to save \$500 in 6 months. How much should you set aside each month?
$83.33 per month)*
If you earn \$300/month and your expenses are \$250, how much is your surplus?
$50
What’s one example of a business expense?
Supplies, rent, marketing, etc.
True or False: You can build a credit score as a teenager.
True — through authorized user accounts or secured cards.
What's an emergency fund?
Money saved for unexpected expenses.
True or False: A savings account is the best place to grow your money fast.
False — it’s safe but grows slowly.
What does “pay yourself first” mean in budgeting?
Save a portion of income before spending on anything else.
If a lip gloss business makes $200 in sales and spends $75 on materials, what is the profit?
$125
Name one pro and one con of using a debit card.
Pro: no debt; Con: limited fraud protection
Your friends are going out to eat, but you’re trying to save. What’s a smart compromise?
Eat at home first and join after, suggest a low-cost activity, etc.
Name one low-risk and one high-risk investment.
Low-risk: savings bond; High-risk: cryptocurrency or stocks.
You're saving for a trip that costs \$600 in 3 months. How much should you save each month?
$200/month
Name 2 marketing strategies a teen business could use on a $20 budget.
Social media promo, flyer printing, word-of-mouth
Why is it risky to miss credit card payments?
It hurts your credit score and adds interest or fees.
What’s a “sinking fund” and why use it?
Money set aside over time for a specific future expense.
What does “compound interest” mean?
Earning interest on your savings AND the interest already earned.