Understanding Needs and Wants

What is the definition of a "need"?

• Something that you can live without.

• Something you desire but don’t have to have.

• Something necessary for survival or basic well-being.

• Something that you buy just for fun.

What is a "want"?

• Something necessary for survival.

• Something you desire but don’t absolutely need.

• A fixed cost that you must pay each month.

• Money you receive for a service.

A "fixed expense" is:

• An expense that changes from month to month.

• An expense that stays the same each month.

• An optional expense that you can choose to spend on or not.

• A cost that you do not have to pay.

Which of the following is an example of a "variable expense"?

• Rent

• Utility bills

• Car payment

• Grocery shopping

A "discretionary expense" refers to:

• A necessary payment like rent or utilities.

• A purchase you can choose to spend on or not.

• A cost that stays the same every month.

• An unexpected cost.

What is "sales tax"?

• A fee added to the price of goods and services by the government.

• Money you pay to the government every year.

• Money you earn from working.

• A discount on products offered by stores.

What does "wage" refer to?

• A payment received for a specific amount of work, often hourly.

• A fixed yearly payment for a job.

• Money paid to you before taxes are deducted.

• A type of savings account.

A "stipend" is:

• A loan you take out to pay for school.

• A fixed amount of money given regularly, often for specific work or as a scholarship.

• Money earned from investments.

• The amount of money you pay to the government each year.

What is a "debit card"?

• A card that allows you to borrow money for purchases and pay it back later.

• A card that lets you make purchases using your own money from a checking account.

• A card that gives you points for making purchases.

• A card used to get a loan.

The "economy" refers to:

• The government’s budget.

• The production and distribution of goods and services in a country.

• The number of people who are unemployed.

• The amount of money in your personal bank account.