Budgeting
A plan for how you will spend and save your money
What is a budget?
Saving for a new video game within two months
What is a short term saving goal?
Money saved in a bank can earn this
What is interest?
Money left after necessities have been paid
What is a disposable income?
These are costs you don't expect, like a car repair or a vet bill.
What are unplanned expenses?
Describe short vs long term goal
What is short will be spent in a few months, and long term will be saving for long periods of time such as years?
A safe place to keep money while also earning a small return
What is a savings account?
This type of worker is likely to earn the most over a year
What is a full time, high skill worker?
Setting aside money for emergencies can help you avoid this
What is debt?
Saving for retirement
What is a long term saving goal?
One advantage of saving money for emergencies
What is preventing debt?
Higher levels of these often lead to higher earnings
What are skills?
This what people are doing when they track income and expenses each month
What is managing their money?
College tuition for a 7 year old child
What is a long term savings goal?
Keeping money in a bank is generally safe than keeping it here
What is at home?
Working more hours each week generally increases this
What is income?
A family receives a tax refund and spends some while saving most for emergencies. This is not a wise budget compromise. (T or F)
What is False, it is a wise budget compromise?
These goals usually take many years to achieve
What are long term goals?
A financial institution where people save and manage money
What is a bank?
This helps determine how much money a person earns over time
What are job skills and hours worked?