💵 Money Basics
What do we use money to purchase?
Goods and Services
What is a need?
Something essential for living safely.
What is an unplanned purchase?
Buying something that wasn’t part of your original plan.
What is digital spending?
Spending money online or through electronic devices.
What is a budget?
A plan for how you will use your money.
What are two examples of things people spend money on?
Needs, such as food and clothing, and wants, such as entertainment and hobbies.
Name two examples of needs.
Food, water, housing, clothing, or healthcare.
Name two things that can cause someone to make an impulse purchase.
Emotions, advertisements, sales, or excitement about getting something new.
Name two examples of digital spending.
Online shopping, subscriptions, apps, or games.
What does it mean to save money?
Keeping money to use in the future instead of spending it now.
Why is it important to understand where your money goes?
To understand your spending habits and make better financial decisions.
What is a want?
Something non-essential that makes life more enjoyable.
What is one possible effect of impulse buying on your money?
It can lead to unnecessary spending and leave less money for important expenses.
Why can spending cash feel more noticeable than spending digitally?
Cash is physically visible as you spend it.
How can tracking your spending help you manage your budget?
It helps you understand where your money goes and make better financial decisions.
What are two ways spending choices can affect your financial future?
They can affect how much money you save and how much money you have available for important expenses.
Name two examples of wants from our daily lives.
Video games, entertainment, expensive clothing, or eating at restaurants.
You see an advertisement for a toy you weren’t planning to buy, but now you really want it. What is this an example of?
Impulse buying.
Why can digital purchases make it easier to spend money without noticing?
Online purchases can take just a few clicks and may feel less immediate.
You have $50 and plan to spend $30. How much money will you have left to save if you spend exactly as planned?
$20.
How can making thoughtful spending choices help you in the future?
It can help you manage your money, avoid unnecessary spending, and make better financial decisions.
You have a limited budget and need to buy food, but you also want a new video game. Which should you prioritize and why?
Food, because needs are essential and should come before wants when spending money.
What can you do to prevent impulse buying and make a smarter financial decision?
Take time to think before buying and consider whether the purchase fits your budget and is really worth it.
You spend $20 in cash, while your friend spends $20 online. Who spent more money, and why?
Neither. Both spent $20, even though the way they spent it was different.
Why is it helpful to plan your spending and set aside money for savings before buying things you want?
It helps you avoid overspending, cover important expenses, and work toward future financial goals.