Wants VS Needs
Is a warm jacket a want or need?
Need
What is money you get from your parents for doing chores called?
What is an allowance?
Where is a safe place to put your money besides your piggy bank?
What is a Bank?
Besides scholarships and student loans, what is another type of financial aid you can get for college that you don't have to pay back?
What is a Grant?
What is one specific goal you could set for yourself in the next year?
What is saving for a car, shoes, phone
Is a brand-new video game a want or need?
Want
When you put money into the bank what is that called?
You just landed your first job with a steady paycheck. What is the most important first step to take with your new income to ensure you build a secure financial future?
Setting up a budget to prioritize needs, savings, and wants from your net pay.
What is the purpose of an emergency fund, and how much is a good goal to save for it?
An emergency fund covers unexpected costs like car repairs or medical bills. A good goal is to save at least 3 to 6 months' worth of living expenses.
What is something you must have to live, like food and water?
Need
What is a special piece of paper or code that gives you a discount when you buy something?
What is a coupon?
When you take money out of your bank account, what is that called?
What is a withdrawal?
You're moving into your first apartment. Besides paying the rent, what are three other regular bills or payments you need to save for each month?
Utilities (like electricity or water), internet, and groceries
What is a "depreciating asset," and what are some common examples that teens might encounter?
A depreciating asset is something that decreases in value over time, such as a car or the latest smartphone.
A teenager decides to live in a larger home than needed just to have a more desirable address. Explain how this decision has a financial opportunity cost and identify what it is.
This decision prioritizes a want over a need.
You just started a part-time job and have $1,000 saved. A friend offers to sell you their old smartphone for $150, or you can buy the newest model for $800. Which one is the better deal?
Buy the phone from the friend and still have $850 left?
What is the special book or card called that shows how much money is in your bank account?
What is a bank statement?
Money that isn't yours but that you can use, and you'll have to pay back
What is Credit?
Name three things you should have researched before accepting a new job offer.
Salary, benefits (health insurance, dental), retirement plans (401(k)), company culture, growth opportunities, and required skills.
You have a job but your work wardrobe consists of old, mismatched clothes. Your new job requires a professional-looking uniform. Is buying new, professional clothing a want or a need?
A new wardrobe is a need, as it's essential for your job. The nuance lies in the type of clothes you buy.
An online subscription service costs $10 a month. You use it regularly for six months, then forget about it for the next six months. Assuming you don't cancel, calculate the cost of your forgetfulness and describe a smart spending practice to avoid this.
The cost of forgetfulness is $60 (6 months x $10/month). A smart spending practice is to periodically review your credit card statements or use a budget app to cancel unnecessary subscriptions
True or False: If you keep your money at home, it can get lost or stolen more easily than if it's in a bank
True
You have the option of buying an expensive, brand-new car or a reliable used car. Explain this choice to your future self in a "letter to your future self," justifying your decision based on a realistic financial timeline.
The best answers will address the pros and cons of both choices, considering opportunity cost, long-term debt, and how the decision aligns with their vision for their future self.