Spending & Saving
How can you be a good spender?
Create a budget
Compare prices
Access needs and wants
Weight costs and benefits to different payment methods
What is cash?
Paper or coin money
Compare credit vs debit
Credit: Credit cards allow you to borrow money from the card issuer up to a certain limit to purchase items or withdraw cash.
Debit: Debit cards allow you to spend money by drawing on funds you have deposited at the bank.
Name the four types of wages:
What is money?
A medium of exchange, a measure of value, a store of value
Why is it good to save money in a bank rather than keeping the money at home?
Money is protected from theft; it is insured by the bank
Interest rate: able to expand money you have through a savings account
Help you access credit: take out loans for higher purchases (cars, houses)
What is credit?
Borrowing money, or having the right to borrow money, to buy something. Usually it means you’re using a credit card, but it might also mean that you got a loan.
Guess credit or debit: too much spending can lead to debt
Give an example of when people usually tip
Multiple answers: restaurants, taxis, hair salons, valet parking, personal services (nails, spa), food delivery, hotel services
What are the four things money needs to be?
Durable - doesn't easily break/wear out
Transportable - can be moved easily from place to place
Diviable - can be broken down into smaller amounts
Difficult to counterfeit - can’t be easily duplicated
Describe the value of the dollar
ANSWERS VARY:
Understanding the importance of money and how to make informed decisions with it
Understanding how far money goes
What is debit?
A card used to make purchases at businesses (like grocery stores and gas stations) with money in your checking account (money you have put in)
What is a salary?
A salary is the standard compensation for management and upper-level positions. It is an agreed-upon annual total, where a certain number of hours worked per week is expected – typically 35 to 40.
What is the currency in Japan?
Yen
Give an example of an informal job you would like to do
ANSWERS VARY
What is a credit limit?
A limit set by the credit card company on how much you can charge on the card it issued to you. You can use your credit card to make purchases up to your credit limit.
Guess credit or debit: Typically have interest rates/fees
Credit
What is a commission?
This is a form of compensation that is based on performance. The amount an employee receives can vary drastically, depending on how well they perform in a pay period.
What dollar bill does Benjamin Franklin appear on?
$100
Give me an example of how you save or budget your money
ANSWERS VARY
What is a credit score?
A number created from a scoring model that uses information from your credit history
List one pro and one con to using a credit card
Pros:
To build a good credit score
Convenient to carry
Safer and to prevent fraud
Cashback & travel credit
Cons:
If you can’t pay your credit card spendings, you can get into debt and lower your credit score
You have to pay back what you owe with an interest rate
DAILY DOUBLE: Name the four types of income (wasn't mention, take a best guess):
They begin with R, P, I, and W
What year was the first paper money issued in the United States? (Closest guess gets the points)
1690