Vocabulary
A business that keeps your money safe.
What is a bank?
A dollar is the type of this we use in the U.S.
What is currency? (what is money?)
Dentists and Teachers perform these in order to earn an income.
What are Services?
This is another word for purchasing.
What is spending? (or buying)
This is a special fee that you pay to a bank for borrowing money.
What is Interest?
The money that people keep for future spending.
What are savings?
This is a term for a trade without using currency.
What is barter?
Workers can make this, something that you can see or hold, and sell it to earn money.
What is a product? (What is a good?)
Ten of these coins equal a dollar.
What is a dime?
People decide these every day: how much to spend, how much to save, to buy more expensive things or less expensive things etc.
What are spending choices? (also buying decisions)
The money paid to a worker.
What is income?
Many years ago, some people used these as a form of money, things we don't use today.
What are whale teeth and salt? (also sea shells)
This is money that the bank pays to you to hold your savings safely.
What is interest?
This is something that helps people make a purchase today, and actually pay for it later.
What is a credit card?
By sticking to this, a family can plan their spending and saving in an organized manner.
What is a budget?
A plan for keeping track of your money earned and your money spent and saved.
What is a Budget?
It's the reason that money has value.
What is because we all agree that it does?
In a budget, the "Money Earned" side of the page is always equal to the two things on the other side of the page.
What is the "Money Spent + Saved" side of the page?
This is the term for your brainpower and the knowledge you need in order to earn an income.
What is Human Capital?
A farmer and a shoemaker can make barter happen, as long as this is true.
What is that each has something equal in value that the other wants to trade for?
The thing given up in order to get something else.
What is a trade-off?
This is a word for when you are removing money from your bank account.
What is withdrawal?
What we call something that someone buys and hopes it GROWS in value.
What is an investment?
We use this adjective to describe anyone who is getting paid for doing something, whether they are a kid or an adult.
What is professional?
Not being able to go to the movies for 3 months would be called this, if you are deciding to buy a bicycle.
What is the opportunity cost? (the "cost" of the bicycle in terms of going to the movies or not)