Personal Finance Virtual Day #2

What is a budget?

• A type of savings account

• A way to invest for retirement

• A fund for emergencies

• A financial plan that defines expenses for a period of time.

What is an emergency fund?

• A savings account set aside for unexpected situations.

• A way to invest for retirement.

• Something most people don't need, because emergencies are rare.

• An investment account that can grow over time.

Emergency funds are calculated based on:

• Monthly Expenses

• Monthly Income

• Retirement Planning

• Investing for College

Tags

CCSS.6.RP.A.3C

How many months of expenses should be set aside for an emergency fund?

• 3-6 months

• 6-12 months

• 12-18 months

• 1-3 months

Tags

CCSS.7.RP.A.3

Why should we INVEST instead of SAVE for retirement?

• Investing money can make it grow in the long term.

• Investing is safer than saving.

• Saving is too risky for retirement.

• Investing is more fun than saving.

What is debt?

• Money you have borrowed and need to pay back

• Money you make from working at a job

• Money you make from the government

• Taxes that you pay when you buy something

Tags

CCSS.RI.11-12.5

CCSS.RI.6.5

CCSS.RI.7.5

CCSS.RI.8.5

CCSS.RI.9-10.5

Why shouldn't we invest our emergency fund or other short-term savings?

• Investments are risky and can drop in value, especially in the short term.

• Investments are safe and can grow in value, especially over the long term.

• We should invest all of our money so it can grow quickly and we can become rich.

• We should never invest any money because we could lose it all.

What is insurance?

• A service purchased to protect assets and income against financial loss.

• A type of savings account where you put aside money for emergencies.

• A type of investment account where you can buy shares of stock.

• A kind of taxes charged by the government.

If a crop is destroyed by a disease, what will happen to the price of an item?

• the crop will be covered by insurance

• the item will be sold at a lower price

• the price will increase and the item will become scarce

What are some benefits to starting a savings account early?

• you can earn interest on money saved

• putting money aside will help avoid spending it on something else

• setting a savings goal will help

• all of the above