Budgeting
What is a budget?
A plan for how to spend and save your money
What is the basic definition of generational poverty?
Poverty and other things that go along with it passed through generations
What does each part of S.M.A.R.T. stand for?
Specific, Measurable, Achievable, Relevant, Time-Bound
What is a checking account used for?
Daily spending, paying bills etc
What is the main purpose of a savings account?
To save money for the future and earn interest
What is the base rule for budgeting?
50/30/20
Some of the things that cause generational poverty may be out of your control. True or False:
True
Why is the S important?
It gives your goal a purpose and direction
What type of card lets you access money from a checking account?
Debit Card
What are 2 reasons a teen might want to open a savings account?
Emergencies, goals, future
What is the first thing you must do when creating a budget?
Knowing how much money you will make
Name a barrier someone in generational poverty might face
Lack of access to education, healthcare, and transportation
I want to save $150 from each paycheck so I can put it towards buying a car is a S.M.A.R.T goal True or False
False ( No Time Bound)
What happens if you spend more money than you have in your checking account?
You may be charged an overdraft fee
Why is it harder to spend from a savings account than a checking account?
It has limits on withdrawals and no debit card access
What are 2 possible consequences of not sticking to a budget?
Overspending, Debt, Missed bills, No Saving
What is the mentality that someone with a low income mindset might have?
Scarcity
Name 3 things you can use to create a budget
Phone apps, Excel(spreadsheets), pen and paper etc
What are two reasons to check your bank account regularly?
Avoid overdrafts, spot fraud, track spending etc
What is compound interest?
Earning interest not only on your initial investment, but also on the interest you've already earned.
If your income changes from month to month what kind of budget should you use?
flexible or variable based on minimum income guaranteed.
What is one difference between situational and generational poverty?
Situational= short term
Generational= long term cycle
Why is it bad to make a S.M.A.R.T. goal that is not measurable?
Without a measurable target it is hard to track progress or know when you succeeded
What are 3 fees that may come with a checking account?
Overdraft fee, ATM fee, Monthly Maintenance fee
What is the average amount of interest you earn on a high yield savings account?
3%-6%