The Basics of Finance and Budgeting

A need is...

• Something that would be fun to have but you can live without
• Something you must have to survive.
• A plan for managing your money.
• Money earned or received as gifts.

A want is...

• Money you borrowed from someone else that must be repaid.
• Something you must have to survive.
• Money you spend.
• Something that would be fun to have but you can live without

A budget is...

• A plan for managing your money.
• Money earned or received as gifts.
• When you set money aside for the future and do not spend it right away.
• Money you borrowed from someone else that must be repaid.

Income means...

• Money you borrow from someone.
• Extra money the bank expects you to pay back for borrowing money in the first place.
• Money earned or received as gifts.
• Paying for things using money that you already have in your bank account.

Expenses means...

• Money you borrowed from someone else that must be repaid.
• Extra money the bank expects you to pay back for borrowing money in the first place
• Money you spend.
• When you set money aside for the future and do not spend it right away.

What is debt?

• Spending money you don’t have
• Money you borrowed from someone else that must be repaid.
• Extra money the bank expects you to pay back for borrowing money in the first place.
• Paying for things using money that you already have in your bank account.

What is a loan?

• Extra money the bank expects you to pay back for borrowing money in the first place.
• Borrowing money from the company who gave you the card.
• Money you borrow from someone.
• Paying for things using money that you already have in your bank account.

What is interest?

• Borrowing money from the company who gave you the card.
• Extra money the bank expects you to pay back for borrowing money in the first place.
• Money earned or received as gifts.
• A plan for managing your money.

True or false: Using a credit card means you are borrowing money from the company who gave you the card.

• True
• False

True or false: When you use a debit card you are NOT paying for things using money that you already have in your bank account.

• True
• False