Budgeting and Spending
Income VS. Expenses
Income is money that you make and an expense is the money that you spend.
Gross vs. net pay
Gross pay is what employees earn before taxes, benefits and other payroll deductions are withheld from their wages.
Types of savings accounts
Certificates of deposit, Traditional savings account, Cash management account.
Interest and fees impact spending, debt, and savings?
Higher rates encourage saving due to increased returns, while lower rates may boost borrowing and spending as the cost of loans decreases.
Needs VS. Wants
Needs are things that are necessary for survival — think food and shelter. Wants are things you decide to buy, but don't actually need.
Types of income (hourly, salary, commission, bonuses)?
Emergency fund?
A financial safety net for unexpected expenses like medical bills, car repairs or job loss.
Interest Rates?
Interest = Principal × Rate × Tenure.
How fees and interest effect spending?
When interest rates rise, stock markets typically decline.
Education → career → income → lifestyle
Blue ridge, Vet tech, money, vacations.
Simple vs. compound interest
Simple interest is calculated by multiplying the loan principal by the interest rate and then by the term of a loan. Compound interest multiplies savings or debt at an accelerated rate.
Types of Fees?
Creating a budget?
Using 50% of your take-home pay for needs, 30% for wants, and 20% for savings and paying off debt.
Career/education options after high school?
Vet tech, Blue ridge.
Definition of a Bank?
Where you put money for later.
How do interest rates affect spending and savings?
Impact both the cost of borrowing money and the return earned on savings and investments.
Budgeting
Tools that help you manage your money.
7 types of Income
What are commercial banks, and what are their types?
Private sector banks and public sector banks.
What are the four factors that influence interest rates?
Demand and Supply of Money.