Budgeting & Spending
Sarah earns $20 and plans to spend $10 and save $10.
What is a budget?
A safe place to keep money and open accounts.
What is a bank?
Money saved for unexpected emergencies.
What is an emergency fund?
The ability to borrow money and repay it later.
What is credit?
Money earned from a job.
What is income?
Looking at prices and features before buying.
What is comparison shopping?
You need groceries but want a video game. You choose groceries. Answer in the format (______vs. ______)
What are Needs vs. Wants or Wants vs. Needs?
A card that spends money directly from your checking account.
What is a debit card?
An account that stores money and earns interest.
What is a savings account?
A person who receives money from a lender.
What is a borrower?
Pay before taxes and deductions are removed.
What is gross income?
A fake text claiming to be your bank asks for your password.
What is a scam?
Marcus buys candy at checkout that wasn't on his shopping list.
What is impulse shopping?
A machine that lets you withdraw cash and check balances.
What is an ATM?
Interest earned on both your original money and previous interest.
What is compound interest?
The maximum amount you can borrow on a credit card.
Pay after taxes and deductions are removed.
What is net income?
Someone uses your personal information to open accounts.
What is identity theft?
Your rent payment stays the same each month.
What is a fixed expense?
Your paycheck is automatically deposited into your account.
What is direct deposit?
Buying a small ownership share of a company.
What are stocks?
A number lenders use to judge how likely you are to repay debt.
What is a credit score?
Money automatically taken from your paycheck for taxes.
What is withholding?
A phone loses value over time.
What is depreciation?
You choose concert tickets instead of saving for a bike.
What is opportunity cost?
You spend more than is in your account and are charged a fee.
What is an overdraft fee?
Spreading investments across different types to reduce risk.
What is diversification?
A loan with hidden fees and unfairly high interest rates.
What is predatory lending?
Money returned because you paid too much in taxes.
What is a tax refund?
A company promises to repair or replace a product if it breaks.
What is a warranty?