Understanding Money Basics Flashcard

Front

What is a budget?

Back

A plan for managing money

Front

What does it mean to “save” money?

Back

Keep it for later

Front

Which of these is a need? New shoes for fashion, Cell phone with unlimited data, Food and water, Movie tickets

Back

Food and water

Front

Back

You are in debt

Front

What is interest in a savings account?

Back

Extra money the bank gives you

Front

What is the primary purpose of a budget?

Back

To manage financial resources

Front

What happens when you save money in a bank account?

Back

It earns interest

Front

Which of the following is an example of a want? Rent payment, Groceries, Designer handbag, Utility bills

Back

Designer handbag

Front

What is the result of spending more than you earn?

Back

Debt accumulation

Front

What is a common feature of a savings account?

Back

Interest earnings