Explain basic financial concepts.

Explanation should include

• differentiating between saving and investing
• identifying the importance of saving and ways to save
• creating and adhering to a budget, according to the 70-20-10 rule
• demonstrating how to use and maintain a checking account
• defining inflation and its effects on one’s personal finances.

Process/Skill Questions:

• What percentage of one’s income should go toward living expenses? Savings? Debt payment?
• How much money should you have in a fully funded emergency account?
• What are the goals of a budget?
• What are the advantages and disadvantages of debit vs. credit cards?
• What is the difference between a bank and a credit union?

Teacher Resource:

• EVERFI Links to an external site.