Earning, Saveing, and Spending

Why do people want to earn an income?

• to save some money in the bank for the future

• to invest some money in stocks

• to buy their wants and needs

• all of the above

Location, income, and skills are different reasons people choose __________.

• interest rates

• jobs

• goods and services

• banks

Kobe is feeling frustrated that he is not making a high income like his friends who attended college. Kobe did not attend college or do any training for his work. He sees his friends purchasing different wants and saving their money. He is struggling to pay for just his needs. Why does Kobe not make as much money as his friends?

• Kobe is younger than his friends.

• Jobs that pay higher incomes usually require more education and skills.

• Higher incomes are usually given to people who invested in the stock market.

• The banks are giving Kobe’s friends a higher interest rate to keep their money at their businesses.

• none of the above

If people are lucky enough to have extra money after purchasing their needs, which things can they do with the money?

Check all that are true.

• They can pay interest on it.

• They can invest it in stocks.

• They can purchase wants.

• They can put it in the bank to save it.

Which of these people's quotes show that he or she understands that money is scarce?

Check all that are true.

• Al says, "I was getting tired of the color that my bedroom was. I hired a painter to paint my room. After, I had to purchase new blankets and curtains to match."

• Tina says, "Even though I really wanted to go on vacation with my friends, I decided to save my money to add to my emergency fund."

• Marcus says "I use my paycheck to buy things I need, like food from restaurants and the latest sneakers I saw advertised on television."

• Tam says, "I needed a new pair of sneakers because mine had holes in them. When I went to the store, I decided to buy the cheapest pair and save the rest of my money."

Chestnut Hill School has a list of their wants in the order that they want them. After purchasing thirty tablets for the school, the students were asked to identify the opportunity cost. Which student correctly identified the opportunity cost?

• 
• 
• 
• 

Which of the following are considered incentives?

• 
• 
• 
• 
• all the above

Allyson spent the winter shoveling driveways. When her mother realized how much money she made, she suggested Allyson put the money in a bank. Is this a good suggestion?

• Yes, a bank is a safe place to keep money, and Allyson will be able to earn interest.

• Yes, a bank is a safe place to keep money, and Allyson will only be charged a small fee to keep her money there.

• No, a bank charges interest for customers to keep their money at the bank.

• No, a bank is a risky place to keep your money because Allyson is not guaranteed to get her full amount back.

Sylvia did well in the stock market and earned a lot of money. She is telling you about how easy it was and all of the money she made. Even though Sylvia did really well, why might this not be the same outcome for everyone?

• Stocks are hard to buy.

• Stocks do not all have the same interest rate.

• Stocks are risky.

• all of the above