4.1 CFU Intro to Consumer Credit

Front

What is consumer credit?

Back

Consumer credit is the ability to borrow money or access goods and services with the understanding that payment will be made in the future.

Front

What is the total cost of the gaming system Josh wants to purchase?

Back

$1,500.00, taxes included.

Front

If Josh saves $125 each month, how long will it take him to save $1,500?

Back

12 months.

Front

How much must Josh save each month to purchase the gaming system in 4 months?

Back

$375 each month.

Front

What is the formula to calculate the time needed to save a certain amount?

Back

Time (months) = Total Amount / Monthly Savings.

Front

What is the importance of budgeting when planning a purchase?

Back

Budgeting helps individuals allocate their income towards savings and expenses, ensuring they can afford their desired purchases.

Front

What does it mean to have a savings goal?

Back

A savings goal is a specific target amount of money that a person aims to save within a certain timeframe.

Front

What is the difference between saving and investing?

Back

Saving is setting aside money for short-term goals, while investing involves using money to purchase assets with the expectation of generating a return over time.

Front

What is an example of a short-term savings goal?

Back

Saving for a new gaming system or a vacation.

Front

What is an example of a long-term savings goal?

Back

Saving for a college education or a house.