Finance study guide Flashcards
If you have limited means, you ________
Can’t have everything
When you must give something up in order to get something else, it is called _______
An opportunity cost
An opportunity cost can make decision making difficult because _______
You must choose to give up some things in order to get other things
Food, water, shelter, and clothing are examples of ______
Needs
If you have limited means you may need to prioritize. This could mean crossing video games off your shopping list and replacing them with ______
Groceries
Setting a goal lets you ______
Achieve what you want to do
What helps you NOT meet a goal?
Hoping you meet it
Tracking your spending can help you _____
Know where your money is being spent
When you make a budget, it makes tracking easier. TRUE OR FALSE
True
If you have a budget, you have ______
A plan for using your money over a set of time
Keeping track of what you earn, spend, and save are key parts of a ______
Budget
What is a reliable source of info for when you want to buy something
Expert reviews
What kind of info should you find when you want to research buying something
Reliable information
What is not a good source of information?
Product advertisement
What is a job?
Something you do to earn money
What is a career?
The type of job you do for a long time
How is a career path different from a job
A career path is made up of jobs from the same field
If you have a friend interested in dogs, what would they need to have to make that interest into a way of making money
Dogs in the neighborhood that need walking.
If someone likes animals and becomes a zookeeper, they chose a career based on ________
Interests
If someone can cook and bake, and become a chef, what have they chosen a career based off of
Skills
Why is choosing a career based on interests and skills important
Its important to like what you do and be able to do it
Whats the difference between a salary and a wage
Wage- amount paid per hour that you work
salary- Set income paid regularly
Cash is ______
Money you have today
Credit is _____
Money you borrow and promise to pay back later
Debt is ______
Money you have to pay back
Why is a credit card a type of debt
Using a credit card is borrowing money that will be paid back later
You should NOT use a credit card when ____
You want something now that you will never be able to afford
A credit history is _____
A record of how you pay back money to borrow
Why is it important to save money
Savings allow you to buy the things you want and need at s later time
Connection between goals and savings>
Goals can give you a reason to save
Interest earned on a savings account is
The percent a financial institution pays you to borrow money
Insurance can help ___
In an emergency
How can insurance help with meeting savings goals
Insurance pays for some costs of an emergency so you can keep your savings
Why might a stock be an investment that can have some risks
You can lose money if the business you own stock in does not do well
