Financial Wants
What is a want?
Something that you would like to have, but you don't need.
What is a need?
Something you need to have in order to live.
What is a debit card?
A card that gets charged right after you swipe and it comes from your checking account.
What is a budget?
Your plan for spending, saving, and donating.
How you plan to spend your money.
The price you pay to borrow money or the cost you charge to lend money.
What is Interest?
What is an example of a want?
What is an example of a need?
Food, clothes, water, shelter
What is a credit card?
A card that you use to buy something, but you have to pay back because it's not your money.
An exchange of one-product for another-product, typically without the exchange of currency.
What is a trade?
If you are loaning money, would you prefer a high or low interest rate? Explain.
High to receive more interest.
You have been doing odd jobs around your house and your community. So far you have earned $200. If you use the 50 / 30 / 20 rule, how much money would you have saved at this point?
What is $40?
You have been saving up for a new TV that costs $535. Currently you have saved $250 in your account. You have also been approved for a credit card. Your credit limit is $1,000. If you use your credit card, what is the amount you would have to pay on it to avoid interest charges?
You would have to pay the balance of $285 in full to avoid interest charges.
This happens if you don't make your credit card payment on time.
A late fee will be charged.
Giving money to a person or business with the expectation that it will be repaid. For example: a mortgage.
What is loaning.
If you are borrowing money, would you prefer a high or low interest rate? Explain.
Low to pay less interest.
Banks offer services that have to do with money. Name two services banks provide that deal with money.
Savings account, checking account, loans, debit and credit cards
You have been accepted by the bank and now have enough money for your new car. You now have an auto loan with the bank for $10,000. Do you only pay back the amount borrowed? Explain your answer.
No, you have to pay the bank back the money borrowed plus interest.
Non-electronic way of paying for goods.
What is cash or checks?
Receiving money with an agreement to repay it in future, usually with interest charged.
What is borrowing?
The percentage that a lender charges the borrower for a loan.
What is Interest Rate?
Your old car has died and you need a new one. You do not have enough money in your savings account. What do you need to apply for?
A loan
You just received your first debit card. What happens when you use your card for a purchase?
The money comes out of your checking account to pay for the purchase.
What is a type of financial account that pays people interest to put their money in the bank?
What is a savings account?
Giving a gift for charity, humanitarian aid, or to help a cause. Typically money, services, and goods such as clothing, toys, and food.
What is donating?
The formula for calculating simple interest.
What is I= PxRxT