Understanding Money Management Concepts

What is the purpose of a budget?

• To keep track of money coming in and going out

• To buy anything you want

• To buy video games

• To spend it all at the mall

Which of these is a good example of saving money?

• Putting money in a piggy bank or savings account

• Spending all your birthday money on snacks

Why do people save money?

• To avoid using banks

• To prepare for future needs or emergencies

• To spend it on all the things you want

What is income?

• Money you earn or receive

• Money you spend at a store

• Money from your birthday

• Money from your dad

Which is a need?

• A video game

• A dog

• A winter coat

• A jump rope

What is a want?

• Medicine when you're sick

• A meal at a fast-food restaurant

What happens if you spend more money than you have?

• You will always have extra money

• You might go into debt

What should you do if you want to buy something expensive in the future?

• Save a little money regularly

• Wait and hope someone buys it for you

• Ask your mother to buy it

• Borrow money from a friend

Why is it smart to compare prices before buying something?

• To save money and find the best deal

• To buy the first thing you see

How can a job help your future?

• It teaches you to manage time and earn money

• It lets you avoid school