Money in Our Lives & Consumer Skills
Define Trade-offs
The giving up of one thing in return for something else.
What is a Checking Account?
A checking account is a type of bank account that offers easy access to deposited funds.
What is a Saving Account?
A place where you can store your cash safely while earning interest.
True or False: GROSS PAY is the money you get to keep and take home to pay for expenses. NET PAY is all the money you earn at your job. But you do not keep all your gross pay, your employer will take money out to pay for taxes and benefits.
False
*BLANK* is a safety net for your money. *BLANK* is a way to protect yourself from paying all the costs on your own.
Define Opportunity Cost
What you give up to get what you want.
What is the name of the insurance banks provide to protect your money?
FDIC
A budget or financial plan
What are the 3 levels of government do taxes go?
1. Federal
2. State
3. Local
*BLANK* is an agreement between you and an insurance provider. In exchange for regular payments from you, the insurer helps pay your bills if someone gets injured or a car is damaged because of an accident or theft.
Car insurance
The first coupon in America was issued by ______ in the year _____ and was worth ______.
•The first coupon in America was issued by COKE in the year 1887 and was worth 1 FREE ITEM.
An overdraft fee is a charge the consumer receives from the bank. when they do not have enough money in their account to cover the cost.
How much is the fee?
Usually $35 per each transaction.
What are the top 3 reason people save their money?
1. Big Purchases
2. College Education
3. Emergencies
What is a Credit Score?
A 3-digit number that gives lenders an idea of how likely a person is to pay back a loan or make a payment on time.
I’m the one you call when you cause damage to other people and vehicles. I protect others… against you in case an accident is your fault (which protects you… in your wallet). But I won’t pay for any damage to your car or body.
Which Car Insurance Coverage am I ?
Liability Coverage
Antonio is at the grocery store. His favorite mac and cheese cost $1.60 per box. There is a sale: Buy 4 boxes, save $1.
How much will the mac and cheese cost if he buys 4 boxes?
$1.60 x 4 boxes = $6.40 (regular price)
$6.40 - $1 = $5.40 (price with discount)
What are Peer-to-Peer Apps?
Allow users to send one another money from their cell phones through linked bank account or card.
Caroline wants to buy a computer that she can use for school next year which is 6 months away. She discovers that she can buy a computer for $800 at a discount electronics store in town.
How much does Caroline have to save every MONTH to buy the computer?
$133.33 a month
Define what Credit, Principal and Interest are.
1. Credit: is a form of borrowning money where you pack back the principal and the interest.
2. Principal: The amount of money you borrowed.
3. Is what you pay for using someone else money.
Define Premium, Deductible and Coverage Limit.
1. Premium: The amount of money you pay regularly to keep the insurance active, like a subscription fee.
2. Deductible: The amount of money you pay out of pocket before your policy kicks in to cover the cost.
3.Coverage Limit: The most the policy will pay for a given cost.*
What are the 5 Spender Personalities?
1. Avoider
2. Collector
3. Spender
4. Thinker
5. Miser
Jamal has $10 in his checking account. He uses his debit card to buy a video game that costs $25. His bank charges a $35 overdraft fee if he spends more money than he has.
How much money will Jamal owe the bank after buying the video game?
$50
$25 for the game – $10 in his account = $15 overdraft, plus $35 overdraft fee = $50 total owed
What are the 4 Saving Strategies
2. 50/30/20 Rule
3. Zero-Based Budgeting
4. Cash Envelope System
Why is it best to have a PRIME credit score?
It helps you get lower interest rates on loans and credit cards.
Fill in the blank using Insurance Terms:
Imagine you and your friends have A “Lost Phone Insurance Club”. You all pay $5 a month (_______). If someone. If they lose their phone, they pay the first $50 (__________), and then the club helps cover the rest (____________). To get help, they must ask the club (______________).
Premium
Deductible
Coverage
File a Claim