Career Planning and income
What does 'income' mean?
Money earned from work or investments.
What is a budget?
A plan for how to use your money wisely.
What does 'saving' mean?
Setting money aside for future use.
What is comparison shopping?
Looking at different options before buying to find the best value.
What is income tax used for?
To pay for public services like schools, roads, and safety.
What is the difference between gross pay and net pay?
Gross pay is before deductions; net pay is what you take home.
What is the difference between needs and wants?
Needs are essentials; wants are extras.
What is the difference between saving and investing?
Saving is low-risk; investing has higher risk but more potential reward.
Why is quality as important as price?
Higher-quality items may last longer and save money over time.
What is credit?
Borrowed money you must repay, usually with interest.
Name one factor that affects career choice.
Interests, abilities, or values.
If you earn $2,000 and spend $1,800, how much can you save?
$200.
What is compound interest?
Interest earned on both the original amount and previous interest.
What does it mean to be a smart consumer?
Making informed and thoughtful spending choices.
What is insurance?
A way to protect yourself financially against unexpected loss.
How can education level affect income?
Higher education often leads to higher-paying jobs.
Name one example of a fixed expense.
Rent, car payment, or insurance.
Why should you start saving early?
The earlier you save, the more time your money has to grow.
Give one example of a smart spending habit.
Using coupons, waiting for sales, or avoiding impulse buys.
What is a paycheck deduction?
Money taken out for taxes or benefits before you receive your pay.
What type of income do you earn from owning a business?
Profit or self-employment income.
Why is it important to track expenses?
It helps control spending and achieve savings goals.
What is diversification in investing?
Spreading money across different investments to reduce risk.
Why should you avoid emotional spending?
It can lead to unnecessary debt and regret.
What is opportunity cost?
The value of what you give up when choosing one option over another.