Personal Finance Review

What is the difference between a want and a need?

CHOOSE TWO!!

• Needs are things you can't live without like food, clothing, and shelter.

• Wants are things that we would like to have.

• Needs are things we really want

• Wants are things that we spend money on.

What is an opportunity cost?

• A plan for your money

• Money that you spend

• Money that you give up

• What was given up by making a decision. 

  
  

1. What is income?

• A plan for your money

• Money that you spend on things that you need or want

• Money that you earn

• What was given up by making a decision. 

  
  

1. What is an expense?

• A plan for your money

• Money that you spend

• Money that you earn

• What was given up by making a decision. 

  
  

1. What is a budget?

• A plan for your money

• Money that you spend

• Money that you earn

• What was given up by making a decision. 

  
  

What is NOT an example of an opportunity cost?

• You choose to play soccer instead of football

• Your friend gave you $5 and you bought Starbucks instead of Culver's Cheese Curds

• You invested your savings in an Index fund instead of a CD.

• It costs you money to invest in an opportunity like owning a business

What is an emergency fund?

• Money that you save for unexpected expenses.

• Spending money to own something that hopefully  makes money or that goes up in value so you can sell it later.

• A bank account that pays a small amount of interest on the money in that account

• The price/fee that is paid to borrow/use money. Usually a percentage of the amount borrowed or invested.

1. What does investing mean?

• Money that you save for unexpected expenses.

• Spending money to own something that hopefully  makes money or that goes up in value.

• A bank account that pays a small amount of interest on the money in that account

• The price/fee that is paid to borrow/use money. Usually a percentage of the amount borrowed or invested.

1. What is interest?

• Money that you save for unexpected expenses.

• Spending money to own something that hopefully  makes money or that goes up in value.

• A bank account that pays a small amount of interest on the money in that account

• The price/fee that is paid to borrow/use money. Usually a percentage of the amount borrowed or invested.

1. What is a savings account?

• Money that you save for unexpected expenses.

• Spending money to own something that hopefully  makes money or that goes up in value.

• A bank account that pays a small amount of interest on the money in that account

• The price/fee that is paid to borrow/use money. Usually a percentage of the amount borrowed or invested.