Unit 2 Vocab

Section 2.1 Vocabulary

Expense 

A payment for a good or service 

Ex. 

Youtube:

Introduction to business: Expenses

How far are you in your understanding? I can:

1.0: Write a factual statement (not definition) concerning an expense.

2.0: In your own word (not the teacher's), define expense.

3.0: Identify your last 5 expenses (both price and g/s). Label and explain each expense.

4.0: Research the 50 20 30 budget.  Explain how expenses fit into each category.

Fixed Expense  

A monthly expense that stays the same. 

Ex. Student loans, rent, and internet bill.

Youtube: Fixed and Variable Expenses

How far are you in your understanding? I can:

1.0: Write a factual statement (not definition) concerning fixed expenses.

2.0: In your own word (not the teacher's), define fixed expenses.

3.0: Identify why fixed expenses are more desirable than variable expenses.

4.0: State 5 different fixed expenses.  Explain why each one is considered a fixed expense and how it may change to a different type of expense.

Variable Expense 

A monthly payment that changes in cost. 

Ex. Electric bill, gas bill, and water bill. 

Youtube: Fixed and Variable Expenses

How far are you in your understanding? I can:

1.0: Write a factual statement (not definition) concerning a variable expense.

2.0: In your own word (not the teacher's), define a variable expense.

3.0: Provide 3 examples of typical categories that would be in a family's budget.

4.0: State 5 different variable expenses.  Explain why each is considered a variable expense and how it may change to a different type of expense.

Occasional Expense 

A payment that does not occur regularly.

Ex. Income tax.

Youtube:How to Include Impulse and Occasional Expenses To Your Budget

How far are you in your understanding? I can:

1.0: Write a factual statement (not definition) concerning an occasional expense.

2.0: In your own word (not the teacher's), define an occasional expense.

3.0: Explain with detail why occasional expenses hurt some budgets.

4.0: State 5 different occasional expense.  Explain why each is considered an occasional expense how it may change to a different type of expense.

(NOT A TERM) Unplanned Expense 

A payment that is unexpected, such as a medical emergency, urgent need, an impulse purchase. 

Ex. Death, loan, video games etc;

Youtube:Can your financial plan endure planned and unplanned expenses?

How far are you in your understanding? I can:

1.0: Write a factual statement (not definition) concerning unplanned expenses.

2.0: In your own word (not the teacher's), define unplanned expense.

3.0: Give 2 specific actions that prove that someone is thinking about unplanned expenses.

4.0: Not required

(NOT A TERM) Planned Expense 

A payment that is expected. 

Ex. Vacation, trip, car payment etc;

Youtube:Can your financial plan endure planned and unplanned expenses?

How far are you in your understanding? I can:

1.0: Write a factual statement (not definition) concerning a planned expense.

2.0: In your own word (not the teacher's), define a planned expense.

3.0: Give an expense (with reasoning) that people tend to not plan for.

4.0: Not required

Withdrawal

Money that is taken out of an account. 

Deposit

Money that is put in an account.

Ex. This when you take money out of your bank.

Youtube: Banking Tip #1: How to deposit cash to any Sampath Bank account?

Youtube: Banking Tip #2: How to withdraw cash from your savings account?

How far are you in your understanding? I can:

1.0: Write a factual statement (not definition) concerning deposits & withdrawals

2.0: In your own word (not the teacher's), define deposit & withdrawal.

3.0: Give a mathematical example of both a deposit and a withdrawal. 

4.0: Research 3 different countries currencies.  Explain each countries method of deposit and withdrawal.

Impulse purchase

The unplanned decision to buy a good or service made just before the purchase. (An Urgent Want)

Ex. When you go to the mall and you see a cool shirt you didn't intent to buy.

Youtube:How to Stop Impulse Buying: "This Is Your Brain on Advertising" Episode 3

Youtube:How to Include Impulse and Occasional Expenses To Your Budget

How far are you in your understanding? I can:

1.0: Write a factual statement (not definition) concerning an impulse purchase.

2.0: In your own word (not the teacher's), define impulse purchase.

3.0: How do you prepare for impulse purchases? 

4.0: What is one item that you regret purchasing and why?  Describe how that currently makes you feel. 

F.D.I.C. (Federal Deposit Insurance Corporation)

A protection placed on bank account guaranteed the return of deposit up to $250,000 in the event of a bank failure. 

Ex. If you had $260,000 in your account and your bank account has a failure you won't get that extra $10,000 back, just the $250,000 that you are insured.

Youtube: The Deposit Insurance Fund - How it Works

How far are you in your understanding? I can:

1.0: Write a factual statement (not definition) concerning FDIC.

2.0: In your own word (not the teacher's), define 

3.0: What is a safe practice for wealthy people with millions of dollars in cash? 

4.0: Research FDIC.  What happens when a bank fails.  What steps does the bank go through to get the insured money to the customers.  What does the FDIC not cover in a bank failure.  

Section 2.2 Vocabulary

Debt

Repayment that has not yet occurred. 

Ex. Loans, credit card, and overdraft are all types debts.

How far are you in your understanding? I can:

1.0: Write a factual statement (not definition) concerning a

2.0: In your own word (not the teacher's), define 

3.0: In a complete sentence, use three previous vocabulary terms to describe someone who has more than a small amount of debt. 

4.0: Is it smart to be completely debt free?  Research how debt can be both good and bad.  Give an explanation for both.  

Credit Card

A plastic card that allows for the exchange of money from your future. 

How far are you in your understanding? I can:

1.0: Write a factual statement (not definition) concerning a

2.0: In your own word (not the teacher's), define 

3.0:  Why is a credit card not an emergency fund?  

4.0: How old do you have to be to get a credit card?  What are a few ways to avoid some credit card fees once you have a credit card?

Debit Card

A plastic card that allows for the exchange of money from your account. 

Ex. This card can be used for shopping and other necessities, but it is not wise to use it to shop online cause you're just giving your money to their business.

Youtube:VISA Debit Card

How far are you in your understanding? I can:

1.0: Write a factual statement (not definition) concerning a

2.0: In your own word (not the teacher's), define 

3.0: Why is a debit card better than a credit card, but worse than cash? 

4.0: How old do you have to be to get a debit card?  What are a few ways to avoid some debit card fees once you have a debit card?

Interest

Payment for the use of borrowed money. 

Ex. The extra cash you owe them for the use of their money

How far are you in your understanding? I can:

1.0: Write a factual statement (not definition) concerning a

2.0: In your own word (not the teacher's), define 

3.0: Why is interest both a good and a bad thing? 

4.0: What is the difference between simple interest and compound interest.  Explain your answer.

Budget

A spending and savings plan based on income and expenses where you tell every dollar where to go. 

Ex. Emergency funds, savings account, and groceries is all a category that goes with your budget.

How far are you in your understanding? I can:

1.0: Write a factual statement (not definition) concerning a

2.0: In your own word (not the teacher's), define 

3.0: Give a 6th-grade example of budgeting $10 a month 

4.0: Research two types of personal budgets.  Explain how each budget works.  

Emergency Fund

A saving account used only for emergency or urgent needs that include 3-6 months of income. 

Ex. Major car issue or medical emergency would all be examples of that would be in your emergency funds.

How far are you in your understanding? I can:

1.0: Write a factual statement (not definition) concerning a

2.0: In your own word (not the teacher's), define 

3.0: How much of an emergency fund should Bob have if he makes about $560 a month?

4.0: What percent of Americans have no savings at all?  In 5 or more sentences tell how you would educate someone on how important an emergency fund is and how to get started.    

Inflation

The rise of costs for a good or service due to the supply of money. 

Ex. World War 1 had others pay a lot of money for a good or service.

How far are you in your understanding? I can:

1.0: Write a factual statement (not definition) concerning a

2.0: In your own word (not the teacher's), define 

3.0: How should inflation influence your saving habits?

4.0: Go to https://data.bls.gov/cgi-bin/cpicalc.pl.  Compare 5 different prices from the year you were born to October 2018.  Give years that you compared and prices.