Money Basics
What do you call money you earn from working
Income
Is food a need or a want?
A need
What do you call money you set aside for later?
Savings
Is a credit card the same thing as free money?
No. You must repay what you borrow.
You find $10 in your pocket. What is one smart thing you could do with it?
Save it or put it toward a financial goal.
What is a plan for how you will spend and save your money called?
A budget
Are expensive designer sneakers a need or a want if you already have shoes?
A want
Where can you keep your money safely while earning possible interest?
A savings account
What is a credit score used to help measure?
How responsibly someone has managed credit.
A friend wants you to spend money you were saving for something important. What should you do?
Stick to your savings goal and budget.
What is the money called that you receive for doing a job?
Wages or a paycheck
Which should usually come first: paying an important bill or buying a video game?
Paying the important bill
If you save $10 every week for 5 weeks, how much will you have?
$50
What happens if you only pay the minimum on a credit card and carry a balance?
Interest may build up, and it can take longer to pay off the debt.
One store sells a shirt for $20, and another sells the same shirt for $15. How much do you save by choosing the cheaper store?
$5
If you earn $50 and spend $30, how much money do you have left?
$20
You want a new phone, but your current phone works fine. What is the smartest choice if money is
Keep the current phone and save for the new one.
What is an emergency fund used for?
Unexpected expenses, such as car repairs or an urgent bill.
What do you call the extra cost of borrowing money?
Interest
You earn $80 from a weekend job and want to buy something that costs $120. How much more do you need?
$40
Why is it important to track how much money you spend?
To understand where your money goes and avoid overspending.
You have $25. You need lunch for $10 and want a $20 shirt. Can you afford both?
No. Both cost $30, which is $5 over your budget.
You receive $100. You save 20% of it. How much do you save?
$20
Name one way to help build a good credit history when you are eligible to use credit.
Make payments on time and borrow only what you can repay.
You get a text saying you won $1,000, but you must pay $50 first to collect it. What should you do?
Don't pay. It is likely a scam. Verify the offer through an official source.