Budget
What is the first step in creating a budget?
Making a financial goal (tracking money, expenses to make a goal)
What are needs?
Needs are things that are essential for you to live and stay safe.
What is income?
Income is the money you earn or receive, such as, from a job, allowance, or gifts
What is a bank?
A bank is a financial institution that keeps your money safe and helps you manage it.
What is a debit card?
A debit card lets you spend money directly from your checking account.
What is a budget?
A budget is a plan how you will use your money (save, and spending)
What is a want?
Wants are things you like to have but you don't need to survive.
Why is income important for budgeting?
Your income tells you how much money you have to spend, save, and plan with.
What is a Savings account?
A savings account is a bank account where you keep money you want to save and earn interest for future occasions.
How can you make credit?
You can build credit by borrowing small amounts of money and paying it back on time, which shows lenders that you are responsible.
Why is budgeting important?
Budgeting helps you avoid running out of money, prepares you for emergencies, and makes it easier to reach goals.
Why is it important to know the difference between needs and wants?
It helps you spend money wisely and avoid running out of money.
Why is it helpful to track your income?
It helps you stay organized, avoid overspending, and plan for savings, or goals.
What is a checking account?
A checking account is used for everyday spending, like paying bills, or using a debit card.
What is a credit card?
A card that lets you borrow money from the bank to make purchases, as long as you pay it back later.
Why do people use budgets?
To avoid debt, running out money, and to reach goals.
Is a phone a need or want? 😘😀
A phone can be a need and a want because a basic phone for communication would be a need, but if you buy the newest iPhone that is considered a want.
What is gross income?
Gross income is the total amount of money you earn before any taxes or reductions that are taken out.
Why do people use banks?
People use banks to store money safely, save for the future, and access services like checking accounts, savings accounts, and loans.
What is interest?
Interest is extra money the bank pays you for keeping your money in a savings account
How can a budget help you avoid debt?
It keeps you from spending money you don't have.
How can knowing your needs and wants help you budget better?
It helps you prioritize spending on essentials before spending on fun items.
What is net income?
Net income is the money you actually take home after taxes and deductions.
what is a ATM?
An ATM is a machine where you can withdraw cash, check your balance, or deposit money.
What are deductions?
Deductions are amounts taken out of your paycheck, such as taxes or insurance.