Budgeting and Simple Interest

What is the first step in creating a budget plan?

• Create a savings account

• Start spending without tracking expenses

• Guess income and expenses without any research

• Determine income sources and expenses

How do you calculate simple interest rates?

• Simple Interest = Principal / Rate x Time

• Simple Interest = Principal x Rate + Time

• Simple Interest = Principal + Rate x Time

• Simple Interest = Principal x Rate x Time

Tags

CCSS.7.RP.A.3

Why is it important to budget for unexpected expenses?

• To ignore financial planning

• To splurge on unnecessary items

• To be financially prepared for emergencies or unforeseen costs.

• To increase debt

Tags

CCSS.RI.7.2

CCSS.RI.8.2

CCSS.RL.11-12.2

CCSS.RL.8.1

CCSS.RL.9-10.2

When creating a budget plan, what should you consider as fixed expenses?

• Costs that remain constant each month

• Costs that vary each month

• One-time expenses

• Income sources

What formula is used to calculate simple interest?

• I = P + r + t

• I = P - r - t

• I = P / r / t

• I = P * r * t

Tags

CCSS.7.RP.A.3

Give an example of an unexpected expense that should be budgeted for.

• Home renovation

• Lost phone

• Medical emergency

• Car maintenance

What is the difference between simple interest and compound interest?

• Simple interest and compound interest are the same thing.

• Simple interest is calculated annually, while compound interest is calculated monthly.

• Simple interest is always higher than compound interest.

• Simple interest is linear, while compound interest grows exponentially.

How can you adjust your budget to accommodate unexpected expenses?

• Spend more on non-essential items

• Take out a high-interest loan

• Ignore unexpected expenses

• Review current budget, cut back on non-essential expenses, reallocate funds, increase income, create an emergency fund.

Explain the concept of 'paying yourself first' in budgeting.

• Paying yourself first involves borrowing money to cover expenses before saving any portion of your income.

• Paying yourself first means spending all your income on immediate needs and wants without saving anything.

• Paying yourself first is a strategy where you prioritize paying off debt over saving for the future.

• Paying yourself first involves setting aside a portion of your income for savings before paying bills or spending on other expenses.

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.5

CCSS.RI.9-10.3

CCSS.RI.9-10.5

What are some strategies for increasing your savings while sticking to a budget?

• Avoid setting savings goals

• Ignore tracking expenses

• Set specific savings goals, automate savings transfers, cut unnecessary expenses, track spending, use cash instead of cards, find additional sources of income.

• Spend more on luxury items