Personal Finance

Personal Finance

​Costs and Benefits

​Whenever we make a decision, there will be a benefit and a cost. The benefit is what we get, or the good thing that happens because of our choice. The opportunity cost is what we don't get, or what we give up because of our choice.

Multiple Choice

Yuna has a big social studies project due tomorrow. But, her friends are playing soccer tonight at the park. She decided to play with them instead of working on her project. What is her opportunity cost?

• Finishing her social studies project

• Playing soccer with her friends

• She is losing income

• This is an example of savings.

​Personal Budgets-a plan for your money!

• ​income-money you earn or receive

• ​expenditures- money you pay for things

• ​savings- money you set aside for the future

Multiple Choice

Which of the following is an example of income?

• trading supplies with your friend

• money you get for working a job

• buying an ice cream at lunch today

• charging a lunch you will pay tomorrow

Multiple Choice

Which of the following is an expenditure?

• allowance from your parents

• buying an ice cream at lunch

• selling an old game to a friend

• getting paid to help your neighbor

Multiple Choice

What is the purpose of a budget?

• to help people improve their education and skills

• to help people determine how to train for their jobs

• to help people live healthier lives and exercise more

• to help people plan their spending and saving decisions

Multiple Choice

Which of the following is the MOST financially responsible decision?

• Tommy gets $50 for his birthday from his grandma. He spends $75 on Xbox games

• Jamal earns $100 lifeguarding. He spent $5 on lunch and put the rest in the bank

• Katrina sold her old bike helmet for $10 to a friend. She gave the $10 to her favorite charity.

• Stacy was paid $25 for helping her neighbor in the yard. She spent $20 on a T-shirt and $5 on ice cream.