Personal Finance

Match the following terms to definitions: budget, income, expense, wants, needs, benefit, opportunity cost, savings 1. __________________________ - things we lose because of our decisions (if I study instead of playing, I don’t get to be with my friends)

• opportunity cost

• income

• savings

• benefit

Match the following terms to definitions: budget, income, expense, wants, needs, benefit, opportunity cost, savings 2. __________________________ - Money that a person receives, usually from work they have done.

• income

• expense

• budget

• savings

Match the following terms to definitions: budget, income, expense, wants, needs, benefit, opportunity cost, savings 3. __________________________ - Money that a person spends on goods or services

• expense

• income

• savings

• benefit

Match the following terms to definitions: budget, income, expense, wants, needs, benefit, opportunity cost, savings 4. __________________________ - a plan for how to use your income (includes savings and expenses)

• budget

• income

• expense

• savings

Match the following terms to definitions: budget, income, expense, wants, needs, benefit, opportunity cost, savings 5. __________________________ - things that are necessary for survival (food, water, shelter, etc.)

• needs

• wants

• income

• benefit

Match the following terms to definitions: budget, income, expense, wants, needs, benefit, opportunity cost, savings 6. __________________________ - positives that come from our decisions (studying instead of playing earns us a good grade)

• benefit

• expense

• income

• opportunity cost

Match the following terms to definitions: budget, income, expense, wants, needs, benefit, opportunity cost, savings 7. __________________________ - things that are not necessary for survival, but make life enjoyable (video games, car, new backpack, etc.)

• wants

• needs

• income

• savings

Match the following terms to definitions: budget, income, expense, wants, needs, benefit, opportunity cost, savings 8. __________________________ - Money that a person does not spend and saves for the future.

• savings

• expense

• income

• wants

________________________ - what you give up when you make a decision

Creating a budget is important because:

• It helps manage finances and control spending.

• It increases expenses.

• It eliminates the need to save money.

• It guarantees unlimited income.