Money Basics
What is the name for money you earn from working?
Income
What is money called when you put it aside instead of spending it?
Savings
What is a plan for how you will spend and save your money called?
A budget
When you borrow money and agree to pay it back later, what is that called?
A loan
What do you call the money you receive from your job?
Pay
If you have $20 and spend $7, how much money do you have left?
$13
What is a bank account where you can keep money and usually earn some interest?
Savings account
You have $30. You want a $25 video game and a $10 pizza. Can you afford both?
No. You would need $35.
True or False: Using a credit card means you are spending money that you borrowed.
True
What is the difference between gross pay and net pay?
Gross pay is what you earn before deductions; net pay is what you actually take home.
What is the difference between something you need and something you want?
A need is something necessary for living; a want is something you'd like to have.
Why is it a good idea to save money for an emergency?
So you have money available for unexpected expenses.
You make $100 and plan to save $20. How much can you spend?
$80
What is interest?
Extra money paid for borrowing money, or money earned for saving/investing.
Why does your paycheck usually have less money than the amount you earned?
Money is deducted for things such as taxes and possibly benefits.
You get $50 for your birthday. You spend $20 and save the rest. How much do you save?
$30
You save $10 every week. How much will you have after 10 weeks?
$100
You want new shoes that cost $100. You have $60. What are two ways you could get the remaining $40 without going into debt?
Save more money, earn more money, or find a cheaper pair.
You borrow $100 and eventually have to pay back $120. How much did you pay in interest?
$20
You make $12 per hour and work 10 hours. What is your gross pay?
$120
You earn $15 per hour and work 4 hours. How much do you earn before taxes?
$60
You have $500 saved. Your car suddenly needs a $300 repair. Why is having savings helpful?
You can pay for the unexpected expense without needing to borrow as much or go into debt.
You have $50 to spend. You see something you really want for $45, but you also need $20 for something important next week. What should you consider before buying it?
Whether buying it would prevent you from paying for the upcoming need; wants should generally come after important needs.
Why can buying something with credit end up costing more than its original price?
Interest and fees can be added to the amount you borrowed.
Job A pays $15/hour for 20 hours. Job B pays $12/hour for 30 hours. Which job gives you more gross pay for the week?
Job B — $360 compared with $300.