Needs vs. Wants
Something you must have to stay alive.
A need
Money that you borrow and must pay back
Debt or a Loan
Money you earn from a job or chores
Income
This is the amount of money left over after all your bills and expenses have been paid.
surplus (or savings)
This is your "take-home pay," or the amount of your paycheck after all deductions.
net pay
Something you would like to have, but don't need
a want
A card that lets you "buy now, pay later.
Credit card
Money you spend on things
Expenses
Eating out, streaming services, and new clothes fall into this category of "optional" spending.
discretionary expenses
April 15th is the traditional "National" day for this annual financial deadline
tax day
Food and water are examples of this
a need
The number that shows how good you are at paying back loans
Credit score
A plan for how to spend and save your money
A budget
Unlike a fixed expense, this type of cost—like your grocery bill—changes from month to month.
variable expense
this type of tax is a percentage added to the cost of goods and services at the time of purchase.
sales tax
Video games and jewelry are examples of this
wants
The person or bank that lends you the money.
Creditor
Expenses that stay the same every month, like rent
Fixed expenses
This is the specific plan you create to track how much money comes in versus how much goes out
budget
This is the government agency responsible for collecting taxes and enforcing tax laws.
IRS (Internal Revenue Service)
The thing you give up when you choose to buy something else.
Opportunity cost
What happens to your debt if you don't pay it back on time.
It grows
Expenses that change, like the grocery bill.
Expenses that change, like the grocery bill.
To find your "Net Worth," you subtract your liabilities ( from you ____.
assets
If you paid more in taxes throughout the year than you actually owed, you will receive this from the government
tax refund