Financial Literacy: Lesson 1 Intro

What is the main difference between a need and a want?

• A need is something you can live without, a want is essential for survival.

• A need is something you must have, a want is something you can live without.

• A need is something fun to have, a want is something you must have.

• A need is essential for survival, a want is something you can live without.

Why is it important to know the difference between needs and wants?

• To spend money on fun things only.

• To be more responsible with your money.

• To avoid buying anything.

• To save all your money.

What is a budget?

• A plan for spending all your money.

• A plan for earning money.

• A plan for managing your money.

• A plan for borrowing money.

What is one of the main reasons to create a budget?

• To borrow more money.

• To live within your means.

• To spend more money.

• To avoid earning money.

What is saving?

• Spending money right away.

• Setting money aside for the future.

• Borrowing money from a bank.

• Using a credit card.

What is a loan?

• Money you earn as a gift.

• Money you borrow and must repay.

• Money you spend on fun activities.

• Money you save for the future.

What is a savings account?

• An account for paying bills.

• An account for saving money and earning interest.

• An account for spending money.

• An account for borrowing money.

What is a checking account used for?

• Earning interest on your money.

• Borrowing money from the bank.

• Paying bills and other immediate needs.

• Saving money for the future.

How does a credit card work?

• It earns interest on your money.

• It saves money for the future.

• It borrows money from the credit card company.

• It uses money you already have in your bank account.

What is the main difference between a credit card and a debit card?

• A credit card is for saving money, a debit card is for borrowing money.

• A credit card is linked to your savings account, a debit card is not.

• A credit card uses borrowed money, a debit card uses your own money.

• A credit card earns interest, a debit card does not.