Futuresmart lessons 1-4

What is an opportunity cost?

• Giving up one thing so you can have another

• The amount of money you put into savings every year.

• The amount of money a business makes every year from sales.

Which of the following expenses should be included in a typical budget?

• Taxes

• Expenses

• Savings

• All of the above

Which of the following would be considered a want for most people?

• A brand-name jacket

• A place to live

• Transportation to get to work

If you know the unit price of an item, you are better able to:

• Price compare

• Estimate how much you will need

• Determine the total cost of the purchase

Which of the following would be considered a want rather than a need for most people?

• A place to live

• A smartphone

• Food

You are creating a budget for your new business. What should you include?

• All income and expenses

• Income but not expenses

• Fixed expenses only

Which of the following is a variable expense for many adults?

• Eating out

• Rent

• Car payment

Income earned on an hourly basis is called a:

• Wage

• Salary

• Benefit

Which factor has the biggest impact on a credit score?

• payment history

• type of credit

• amount owed

Miss Smith wants to use money from her checking account to make a purchase. Which payment method should she use?

• Prepaid card

• Credit card

• Debit card