Budgeting
What is budgeting?
A set plan for how you want to use your money.
What is credit?
Borrowing money with the promise to pay them back later often with interest ( similar to a loan).
Money you keep for later.
What is investing?
When you put money into something and with the goal of making more money from it later.
If you have $8 and spend $5, how much money do you have left?
3 dollars!
What is credit history?
Shows lenders how well you’ve repaid money before and shows how reliable you are.
What is a piggy bank?
A place where you can save your money!
Stocks, Bonds, Mutual Funds, Property
Name one way budgeting can help you?
Save money in emergencies
Why is it important to have good credit?
It can help you get loans and shows responsibility towards money so you have more opportunities to borrow money.
Why is it important to save money?
It can help you in emergencies, make you feel safe & secure, and help you reach your goals!
Why should you invest early?
-Earlier you invest, more time you have for compound interest to work its magic!
-Let money grow so you have more in the future than spending it right away
What are the three main budgeting methods?
-50-20-30
-Zero-Wasting
-Envelope Method
What are the 3 types of credit?
What are 3 ways you can save money?
1. Waiting before buying somethingn
2. Saving your allowance if you get one
3. Saving Money in a piggy bank
What is a bond?
When you loan money basically to companies for them to grow and better and because you are giving them money you get interest in return.
In the 50-30-20 rule, what is the 20% used for?
20% is savings
If you are in a emergency and you need money urgently, what money can you use?
Your savings!
What is compound interest?
When you earn interest on your money, and then you also earn interest on the interest you already earned.