Budgeting Vocabulary for Students

What is a loan?

• A loan is an investment that guarantees profit.

• A loan is a type of insurance policy.

• A loan is a gift that does not need to be repaid.

• A loan is borrowed money that must be repaid with interest.

If you can't afford a car, what does that mean?

•  You have enough money to buy it.

• You don't have enough money to buy it.

• You can buy it but choose not to.

• You can borrow money to buy it.

How do salaries differ from wages?

• Wages are always higher than salaries, regardless of the job type.

• Salaries are paid weekly, while wages are paid monthly.

• There is no difference; both terms mean the same thing.

• Wages are typically paid to blue-collar workers on an hourly basis, while salaries are fixed annual payments often received by white-collar workers.

What does it mean to earn money?

• To earn money means to spend it wisely.

• Earning money is about saving as much as possible.

• To earn money is to inherit wealth from family.

• To earn money is to generate income through work, services, or investments.

What does it mean to inherit money?

• To win money in a lottery.

• To borrow money from a bank.

• To donate money to charity.

• To receive money or property from someone who has passed away.

What does it mean to charge someone for a service?

• To request payment for providing a specific service.

• To provide a service without expecting any payment.

• To charge someone for a product instead of a service.

• To offer a service for free to everyone.

What does it mean to pay back a loan?

• To return borrowed money to a lender, including interest.

• To borrow money without any conditions.

• To invest money in a business venture.

• To receive money from a lender without repayment.

Is the statement correct?

Putting money aside means to spend all your income immediately.

• TRUE

• FALSE

1. It's important to have  ...  to cover unexpected costs, like car repairs or medical bills.

• insurance

• inherit

• interest

• afford

What does it mean to "owe" someone?

• To have received something for free without any obligation.

• To be required to pay back money or return a favor to someone.

• To give a gift to someone without expecting anything in return.

• To have extra money available that you can lend to others.