Personal Finance

What are some examples of ways you can earn an income?

Adults received paychecks for their work. You can earn an income by selling lemonade and babysitting.

If you have limited income, what items should you spend your money on?

If you have a limited income you should spend your money on needs instead of wants.

income

a gain usually measured in money, that comes from labor, business, or property

budget

a plan for using money

How can a budget help you make economic decisions?

A budget is a plan for spending money. When you create and stick to a budget, you prioritize needs over wants. It can also help with savings.

What is the difference between a fixed expense and a variable expense? Give examples of each.

A fixed expense is a cost that stays consistent or doesn't change. Some examples are rent/mortgage payments and car payments. A variable expense is a cost that fluctuates or changes. An example is a grocery bill.

What is the difference between wants and needs? Give examples of each.

A need is something necessary for survival. Some examples of needs are housing and food. A want is something you desire. An example of a want is a new video game.

List some ways you could help your family save money.

Everyone can help save money. Some examples of ways you can help your family save money are to order water at fast food restaurants, save your ice cream money instead of purchasing ice cream, or do chores in your neighborhood to earn an income.

Why is saving money important?

It is important to save money for emergencies and so that you can purchase wants that cost more than you currently have.

List some examples of an expense.

Some examples of expenditures are buying groceries, buying a new video game, and paying an electric bill.

needs

something necessary

expense

something spent - the cost

wants

something you desire

economics

the science that studies and explains facts about the making, selling, and using of goods and services