Definitions
What is financial management?
Taking care of your money through making smart choices like saving and budgeting
Where do most adults get their monthly income from?
Job or Work
What is it called when you put money aside so that you access it later?
Savings/Savings account
This is a business where people can deposit money, withdraw money, and save money?
Bank.
Is it smart or risky to make a shopping list before you go to the store?
Smart.
Something you can buy that you can't live without.
Need.
Name 2 monthly expenses that an adult that lives in an apartment/house needs to pay.
Money you expect to make/earn?
Income
What can happen if you don’t follow your budget?
You might run out of money or get into debt.
Is it smart or risky to buy something just because it’s on sale?
Risky — Even sale items can waste money if you don’t actually need them
Something you can buy that is not a priority is called a...
Want
Name 2 monthly expenses that an adult that lives in an apartment/house has that is a want.
Entertainment Apps (Netflix, Hulu, etc...)
WiFi/Cable
Expenses that we spend money on every month are also called...
Bills
What does “on sale” mean?
It costs less than usual.
Is it smart or risky to borrow money from a friend and not pay it back?
Risky — Not repaying borrowed money can hurt relationships and trust.
Name two examples of needs & two examples of wants.
Wants: Video games, Junk food, electronics, designer items
Name 3 expenses that comes with owning a car?
Car Payments
Insurance
Gas
Maintenance
A spending plan to help you manage your money.
Budget
What’s one way to find the best deal when shopping?
Compare prices, use coupons, look for discounts
Is it smart or risky to spend your money on fun things before paying bills?
Risky — You might run out of money and miss payments for important needs.
Why is it important to take care of your needs before your wants?
To ensure that your basic needs are covered and you won't run out of money (survival).
What is one reason someone might want to save money?
Emergencies, big purchase, trips/vacations, fun/leisure activities, etc.
Why is it helpful to make a budget?
So you know how much to spend and how much to save
Why is it helpful to make a shopping list?
It helps you stay focused and not overspend.
Is it smart or risky to buy something with money you think you’ll get later?
Risky — Spending money you don’t have yet can lead to problems if that money doesn’t come, leaving you short on cash or in debt. It’s better to wait until the money is in your hand.