Budget Boss
What is a budget?
(A plan for how to spend and save your money)
Is a backpack for school a want or a need?
(Need)
What is credit?
(Borrowing money to pay back later)
What is a stock?
(A share or piece of ownership in a company)
What does “gross pay” mean?
(Pay before taxes and deductions)
What happens when you spend more money than you earn?
(Debt)
What’s one benefit of using a coupon?
(It saves money on a purchase.)
What does it mean to pay interest?
(Paying extra money for borrowing)
What’s one reason people invest money?
(To grow their money over time / retirement / big goals)
This is the paper or digital form that tells how much money you earned at work.
(A paycheck [or pay stub])
What’s the difference between income and expenses?
(Income is money you earn; expenses are money you spend.)
Name 2 strategies for saving money when shopping.
(Use coupons, wait for sales, compare prices, etc.)
What is the main difference between a credit card and a debit card?
(A credit card borrows money you must pay back later; a debit card uses money directly from your bank account.)
What is one risk of investing in the stock market?
(You can lose money.)
What are 2 things taxes help pay for?
(Schools, roads, police, fire departments, etc.)
What is an emergency fund and why is it important in budgeting?
(An emergency fund is money set aside to cover unexpected expenses like car repairs or medical bills; it prevents financial emergencies from causing debt.)
What does “unit price” mean, and why is it helpful?
(Price per item or ounce; helps you compare deals.)
What happens if you only pay the minimum on your credit card?
(You stay in debt longer and pay more interest.)
When you put your money in different things like savings, stocks, and retirement to reduce risk?
(Diversification)
What is a deduction on a paycheck?
(Money taken out for taxes, insurance, retirement, etc.)
Give one example each of a fixed expense and a variable expense
(e.g., rent = fixed, groceries = variable)
This type of marketing tricks you into buying something by making it seem urgently limited or exclusive.
What is scarcity marketing (or fear of missing out)
Give one example of both good debt and bad debt
(Good debit = student loans, mortgage loans, auto loans for work, business loans / Bad debt = credit card debt from non-essential purchases, auto loans for luxury cars, store financing with high interest)
What is the benefit of starting to save/invest at a young age?
(Compound interest grows your money faster over time)
Name two common paycheck deductions besides taxes.
(Health insurance [Medicare/Medicaid], retirement savings, Social Security)