Navigating Needs and Wants in Financial Literacy

What is something essential for survival?

• Skateboard

• Clothing

• Video game

• Favorite toy

What is a need?

• Something rarely used

• Something fun to have

• Something not necessary

• Something essential for survival

What is the main purpose of creating a budget?

• To spend more money

• To go into debt

• To manage money effectively

• To borrow money

What does it mean if you are saving money?

• You are setting it aside for future use

• You are spending

• You are losing money

• You are borrowing

What is a loan primarily used for?

• Purchasing significant items like a house

• Paying daily expenses

• Saving money

• Earning interest

What does interest on a loan mean?

• An extra charge for borrowing money

• A reduction in the amount owed

• A discount given by the bank

• The principal amount of the loan

What type of bank account typically earns interest?

• Checking account

• Credit account

• Loan account

• Savings account

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

• Both cards earn interest

• Credit card uses borrowed money

• Debit card uses borrowed money

• Both cards do not allow purchasing

What can you do with a checking account?

• Borrow money from the bank

• Save money for long term

• Earn interest

• Pay bills and immediate expenses

Why is financial literacy important for kids?

• To learn good money habits

• To avoid learning

• To spend money carelessly

• To play games