Money Basics
You earn $15/hour and work for 4 hours. Before taxes, how much did you earn?
$60
What is one of the factors people think about when choosing a bank?
Location, convenience, rates, fees
Which of these is a need: Netflix, Groceries, Concert tickets
Groceries
What does a budget help you do?
Plan how to spend and save your money.
Adding or putting money into an account.
Deposit
What is the difference between gross pay and net pay?
Gross pay is before taxes/deductions; net pay is what you actually take home.
Why is it important to regularly check your bank account?
To track spending, make sure transactions are correct, and spot fraud or mistakes
Name something that can be both a need and a want depending on the situation.
Phone, shoes, clothing, car
If you earn $150 and want to save 20%, how much should you save?
$30
Taking money out of an account
Withdrawal
What is one benefit of having a bank account instead of keeping all your money in cash?
It's safer (most banks are insured), easier to save, earns interest (depending on account type)
Name two common types of banking accounts
Checking and savings
Sometimes wants are still worth spending money on. What questions should you ask yourself before making that purchase?
Can I afford it? Will I still want it later? Does it fit my budget?
You save $25 every month. How much will you have after one year?
$300
Money you earn from a job, allowance, gifts, etc.
Income
True or False: Interest is always a good thing. Explain!!
False! - Credit cards debt can gain interest, meaning you owe more and more money each month!
Check
Why is it helpful to know the difference between needs and wants?
It helps you prioritize spending and make better financial decisions.
A pair of jeans costs $80. You have a 20% off coupon. How much do you save?
$16
Extra money that you either earn or owe
Interest
If inflation causes prices to rise, what happens to the value of your money?
It decreases -- you can buy less with the same amount of money.
What is the difference between a debit card and a credit card?
A debit card uses your own money from your bank account; a credit card lets you borrow money that must be repaid.
A family is creating a monthly budget. Name three expenses they should plan for before entertainment?
Rent/mortgage, groceries, transportation (gas money, bus fare), utilities (gas bill, water bill, electricity bill)
I made $200 this month. If I spend $45 on gas, $60 on groceries, and $25 on entertainment, how much money do I have left at the end of the month?
$70
When the prices of goods and services increase over time.
Inflation