Money Basics
What do we call money you earn from working?
Income
Why is saving money important?
For future needs or emergencies
What does “budget” mean?
A plan for how to spend money
Name one way kids can earn money.
Chores, babysitting, lawn work
What does it mean to invest?
Put money in something to grow it
What are coins and paper bills called?
Cash
What is something you save money for in the future called?
A savings goal
What should you do before buying something expensive?
Compare prices or think before buying
What do we call money earned from a job every hour?
Wages
What is a stock?
A small ownership in a company
What is money called that you save instead of spending?
Saving
What is a short-term savings goal?
Something you save for soon
What happens if you spend more than you earn?
You go into debt
What is a salary?
Regular pay for a job
Name one type of investment.
Stocks, bonds, real estate
What do we call a plan for how to use your money?
Budget
What is a long-term savings goal?
Something you save for over a long time (college, car)
Why is it smart to wait before buying something you want?
To avoid impulse spending
What is the difference between a job and a business?
A job earns wages; a business earns profits
Why do investments sometimes lose value?
Markets change and involve risk
What is the difference between a need and a want?
A need is required to live; a want is optional
What is an emergency fund used for?
Unexpected expenses
Why should you compare prices before buying?
To get the best value
What is passive income?
Money earned with little daily work
Why is starting to invest early a good idea?
More time for growth (compound interest)