Understanding Money and Spending Choices

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What is money?

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Money is a medium of exchange that people use to buy goods and services.

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Why is saving money important?

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Saving money helps you prepare for future expenses and emergencies.

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What is a budget?

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A budget is a plan that helps you manage your money by tracking income and expenses.

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What does it mean to spend money?

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Spending money means using your money to buy things you want or need.

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What is a savings account?

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A savings account is a bank account where you can save money and earn interest.

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What is credit?

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Credit is borrowing money to buy something now and paying it back later.

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Why do people use credit cards?

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People use credit cards to make purchases when they don't have enough cash on hand.

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What is an expense?

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An expense is any money that you spend.

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What is the difference between needs and wants?

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Needs are things you must have to live (like food and shelter), while wants are things you would like to have but don't need.

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What is a financial goal?

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A financial goal is a target you set for how much money you want to save or spend.