Money Basics
Something that enriches your life but is not necessary to survive
What is a want?
A plan for how you will use your money
What is a budget?
a tool for spending money that you already have
what is a debit card?
Alex earns $100 each week and wants to save $40, spend $30, and set aside the rest for gas. The plan Alex creates for this is called this.
What is a budget?
Which board game has made more people argue about money than almost any other?
S: See if it’s a need or a want
T: Think about your financial goal
O: observe the total cost
P: plan before you purchase
What is S.T.O.P before you shop?
car or house payments, phone bills, subscriptions, are examples of _________ expenses.
what are fixed expenses?
the thing you receive when you borrow money
what is credit?
Ethan gets paid from his summer job. He wants a safe place to keep his money and earn a little interest while saving for a car
What is a saving account?
This Founding Father appears on the $100 bill even though he was never a U.S. president.
Benjamin Franklin
Specific, Measurable, Attainable, Realistic, Timely
What does S.M.A.R.T stand for?
snacks, clothing, entertainment are examples of ________ expenses.
variable
true or false: your credit can affect things like loans, apartments, insurance rates, and sometimes employment.
what is true?
Jordan saves $50 every month. After one year, Jordan has $600. If the money is kept in a bank that pays interest, the total will grow even more because of this effect.
What is compound interest?
True or False: A penny costs more than one cent to make.
True
Saving for a new pair of shoes is an example of a __________ term goal
what is short term goal?
putting money into your savings the minute you get the paycheck, then paying your living expenses, and finally the amount you have left is what you get to spend on the things you want
What is the economic principal of paying yourself first?
most common type of debit cards, linked directly to a checking account. Used for in-person and online purchases, ATM withdrawals, and sometimes check deposits. Funds are deducted immediately from your account balance
Standard (check) Credit Card
Taylor buys a $300 laptop with a credit card but only makes the minimum payment each month. The laptop ends up costing more than $300.
What is interest?
What is the only U.S. bill that features two signatures?
What is Every U.S. bill (the Treasurer's and Treasury Secretary's signatures).
There is no such thing as a free lunch is a saying that helps someone understand ____________ cost.
what is opportunity cost?
money that is set aside specifically for emergencies such as your car breaking down or going to the emergency room
what is emergency savings?
when someone with good credit signs a loan with you in order to help you get a better rate or line of credit
what is a co-sign?
You have $500 to start your financial journey. You can save it in a savings account earning interest or spend it all on things you don't need. Which choice is more likely to help your future financial goals?
What is saving the money (or putting it in a savings account)?
Which company was the first to reach a $1 trillion market value?
Hint: It is a Tech Company