Budgeting and Spending
What is a budget?
A budget is a plan for how much you will spend on your expenses for a set period of time.
What is a job?
A job is something you do to earn money?
Credit is money that you borrowed and promise to pay back later.
What is revenue?
Revenue is the amount of money a business makes from sales.
What is a savings account?
A savings account is an account at a bank or financial institution that pays you interest on your money.
What is limited means?
Limited means is when you don't have enough money for everything you want.
What is a career?
A career is a type of job you do for a long time.
What is interest?
Interest is a percentage that you pay to the bank on the money you borrow.
What is profit?
Profit is how much is left after a business pays all expenses.
True or False: You can lose money you put into a savings account.
False
What is an opportunity cost?
An opportunity cost is when you give up something to get something else.
Who is likely to earn more over their lifetime, someone with a college degree or someone with a high school diploma?
The person more likely to earn more over their lifetime is the person with a college degree.
What is a credit score?
A score based on how you have paid back money you have borrowed in the past.
What is inflation?
Inflation is an increase in prices for goods and services.
What are bonds?
Bonds are loans to the government or a company for a set period of time. They earn interest and are considered low risk.
Why is it important to keep track of your spending?
It is important to keep track of what you spend so you know how much you've spent and you have enough to pay for what you need.
What is the difference between a wage and a salary?
A wage is an amount that is paid for each hour that you work but a salary is a set income paid regularly.
When is it not a good idea to buy something with a credit card?
It is not a good idea to use a credit card to buy something you will never be able to afford.
If a business made $4,000 in revenue and had $3,200 in expenses, would they have a profit or a loss?
They would have profit.
Stocks are high risk, high reward. What does this mean?
High risk, high reward means that you can make a lot of money but you could also lose a lot of money.
Which of these is a want?
Food
New Jordans
Water
New Jordans
What is the relationship between supply and demand?
Supply is how much of something there is and demand is how much people want or need it.
What happens if you only pay the minimum balance on your credit card each month?
If you only pay the minimum balance on your credit card you will end up paying more money because of interest.
If a business made $3,000 dollars in revenue, and had $3,200 in expenses, would they have make a profit or a loss?
They would have made a loss.
What type of savings or investment would be best for someone who won't need their money for a long time, wants to earn the most interest possible, but doesn't want to risk losing any of their money?
The best type of savings or investment would be a certificate of deposit or a bond.