Smart Spending
Devonta wants a new computer but doesn’t want extra costs. What should he do?
(Save money each week)
Why is it important to have a budget?
(Budgets help people manage their money)
Money loaned to someone to make purchases is called what?
(Credit)
Putting money into something for profitable returns is called what?
(Investing)
Abe is saving for retirement and his son’s college. What type of goals are these?
(Long-term)
Victor lost his job. What’s the most responsible way to revise his budget?
(Identify nonessential expenses to eliminate)
Trace got a promotion. How can a budget help him?
(It helps determine expenses vs. savings)
What’s the biggest drawback of using a credit card instead of cash?
(Paying interest)
What is an example of income?
(A paycheck from a job)
Buying a bowling ball is an example of what type of goal?
(Short-term)
Which payment method can cost more than the purchase price because of interest?
(Credit card)
Define “budget.”
(A plan for how to spend and save money)
Which payment method can cost more than the purchase price because of interest?
(Credit card)
Name one reason saving is important.
(Emergency fund, future purchases, etc.)
Saving for a camping trip is an example of what type of goal?
(Short-term)
Why is it important to avoid impulse buys with credit?
(They can lead to debt and interest payments)
What’s one thing a budget can help you prepare for?
(Future expenses / emergencies)
Name one way to avoid credit card debt.
(Pay the full balance each month / avoid overspending)
What’s the difference between saving and investing?
Saving: storing money safely; Investing: risking money for potential growth)
Give an example of a long-term goal.
(Buying a house, retirement savings, etc.)
Give one example of a smart short-term financial choice.
(Answers may vary – e.g., saving for a specific purchase instead of using credit)
Name one consequence of not having a budget.
(Overspending, debt, missed bills, etc.)
What’s one advantage and one disadvantage of credit cards?
(Advantage: builds credit history; Disadvantage: interest charges)
Name one example of a good investment for long-term growth.
(Stocks, retirement accounts, etc.)
Give one example each of a short-term and long-term financial goal.
(Short-term: saving for a trip; Long-term: paying off a mortgage)