Financial Literacy

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What is a budget?

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A budget is a plan that outlines how much money you expect to earn and how much you plan to spend over a certain period.

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What does it mean to have a balanced budget?

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A balanced budget means that your income is equal to your expenses, so you are not spending more than you earn.

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What is income?

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Income is the money you receive, usually from work or investments.

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What are expenses?

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Expenses are the costs or money you spend on goods and services.

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What is sales tax?

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Sales tax is a tax added to the price of goods and services at the time of purchase.

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What is the purpose of saving money?

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Saving money helps you prepare for future expenses, emergencies, or big purchases.

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What is the difference between needs and wants?

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Needs are essential items for survival (like food and shelter), while wants are things that are nice to have but not necessary.

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What is an allowance?

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An allowance is a set amount of money given regularly, often to children, to manage their own spending.

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What does it mean to decrease expenses?

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Decreasing expenses means finding ways to spend less money on non-essential items.

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What is income tax?

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Income tax is a tax that governments impose on individuals' earnings.