Wk 7 - Finances and Budgeting

What is interest?

• Interest is the price that a person or entity pays for borrowing money.

• Interest is the price that a person or entity pays for stealing money.

• Interest is the price that a person or entity pays for owning money.

What is a loan?

• A loan is an agreement between two people or entities where one party temporarily gives a sum of money to the other.

• A loan is an agreement between two people or entities where one party permanently gives a sum of money to the other.

• A loan is an agreement between two people or entities where one party steals the money from the other.

What is a debit card?

• You can spend the money you own

• You can spend more money than you own

• You have to save the money you own

What is a credit card?

• You can spend the money you own.

• You can spend more money than you own.

• You have to save the money you own.

What is inflation?

• An overall increase in the price of goods and services over time.

• An overall decrease in the price of goods and services over time.

• The overall the price of goods and services never changes over time.

What is the 50/30/20 rule?

• 50% on necessary expenses, 30% on optional expenses, 20% in savings

• 50% on optional expenses, 30% on necessary expenses, 20% in savings

• 50% on savings, 30% on necessary expenses, 20% in optional expenses

What is the actual amount of money called that you receive in your payslip?

• Net Pay

• Total Pay

• Taxable Pay