2.04 Financial Management

The essentials you can't live without are called:

• Wants

• Needs

• Income

• Expenses

Which of the following is an example of a need for most people?

• An expensive car

• A big-screen TV

• Designer jeans

• A place to live

It's important to spend money on things you need before spending money on things you want:

• True

• False

What is an expense?

• a tax

• a job

• a payroll deduction

• something you use or buy

The money that you receive for mowing the lawn, babysitting or getting an allowance is called__________.

• Income

• Credit

• Debt

• Interest

What is money you owe called?

• debt

• credit

• interest

• fee

What is a good reason to save money?

• To have money to buy things

• To have money put aside for emergencies

• For a future purchase

• All of the above

What is the fee paid for borrowing money called?

• interest

• credit

• debit

• tax

This account allows you to withdraw money, pay a bill, or make purchases easily.

• Checking Account
• Savings Account
• Market Money Account
• CD Account

This account allows you to deposit money at a bank for safekeeping.

• Saving Account
• Checking Account
• Bill Account
• Casino Account