JA Summative Review

What will cause an increase in a person’s income?

A second job

What is a plan for saving and spending?

Budget

What describes the total of a person’s earnings when they get a job?

Income

What term(s) is/are MOST linked to spending?

Debit and Checking

What describes using credit?

Buy now, pay later

How do most people buy a home in the US?

Getting a loan from a bank

What is the difference between income and expenses?

income = earning money expense = spending money

Fixed expenses

car payment, mortgage, insurance

Variable expenses

groceries, entertainment, eating out

What is the fee charged by lenders to borrow money?

interest

When budgeting, what should be the first thing you consider?

NEEDS

What BEST describes an investment?

Spend money to make money

What BEST describes credit?

Buy now, pay later

What happens if you do not pay back you car loan?

Repossession of you car (the bank takes your car)

Why do banks use your credit score?

To determine your INTEREST RATE for your loan

The category that most people spend money on in a household budge is

housing

A scooter is coming out in a month and you would like to have enough money to purchase it. What is your BEST financial choice in buying the game?

Put money into a savings account at a bank.