Needs vs Wants
This term describes something necessary for survival, such as food or shelter.
What is a need?
This type of bank account is used for everyday spending and paying bills.
What is a checking account?
A three-digit number that shows how trustworthy you are at paying back money.
What is a credit score?
A goal you want to reach soon, usually within a year.
What is a short-term goal?
A plan for how you will spend and save your money.
What is a budget?
This term describes something nice to have but not essential, like new sneakers or video games.
What is a want?
This type of account is designed for storing money over time and earning interest.
What is a savings account?
This card allows you to borrow money now and pay it back later.
What is a credit card?
A goal that takes several years to achieve, like saving for college.
What is a long-term goal?
The extra money you earn on savings or pay when borrowing.
What is interest?
A warm winter coat is this type of expense, not just something for fun.
What is a need?
This card pulls money directly from your bank account when you buy something.
What is a debit card?
Someone who often misses payments and has a low credit score may be described as this.
Who is a risky borrower?
A goal that is Specific, Measurable, Achievable, Relevant, and Time-bound.
What is a SMART goal?
This fund helps you cover unexpected expenses like car repairs.
What is an emergency fund?
Eating out often is usually considered this.
What is a want?
When you spend more money than you have in your checking account, this can happen.
What is an overdraft?
Using too much of your credit limit can lower this important financial rating.
What is your credit score?
Saving $500 for a new phone within 6 months is an example of this type of goal.
What is a SMART goal?
Setting one of these can help you stay on track with your budget.
What is a financial goal? (Accept: SMART goal)
Making a budget often starts by separating these two types of expenses.
What are needs and wants?
People often keep 3–6 months of expenses in this type of financial safety account.
What is an emergency fund?
Lenders use this score to decide how much interest to charge you.
What is a credit score?
Deciding to save $20 a month toward a car fund is an example that connects these two types of goals.
What are short-term and long-term goals?
Paying bills late or overspending can make this overall financial measure go down.
What is your credit score?