Money Basics
What do we call money you earn from working?
Income
Why is saving money important?
What does “budget” mean?
A plan for how to manage and allocate money
Name one way kids can earn money.
Chores, babysitting, lawn work
What does it mean to invest?
Put money to use with the expectation of achieving a profit
What are coins and paper bills called?
Money
What is something you save money for called?
A savings goal
What should you do before buying something expensive?
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?
Savings
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
Why would you need a job?
To earn money for expenses
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)