SS8E5: Economic Terms and Personal Finance

     In order to be successful in life, one must know how to make money, as well as how to keep it. But how do you know if you don't know the terms? Here's were you'll learn!

•  Income: Income is the money you make and earn, before all the taxes and such are taken out. You can earn income through your job, birthdays, lottery, and so on.
• Savings: It is the responsible thing to do. Savings is money kept aside, whether it in a Mason Jar at your house or in a Savings Account at the bank. If you want to buy something big, but don't have the money, save it! It is also wise to keep money in case an emergency happens, say when you lose you house or if you are injured.
• Expenditures: Big word, but it is simple. Expenditures is the money you spend, either monthly, yearly, or periodically.
• Budget: A budget is whenever you plan out what you are going to spend each month, on say taxes, bills, or just for fun. A budget is smart because you can keep track of your money.
• Investing: Investing is whenever you put in money to make money. This could be by savings accounts, bank accounts, or stocks. Stocks is when you put money into a company that is successful with hopes that you can earn some of its share of profit.
• Profit: Profit is the money a company or person makes after taxes and other expenditures are paid. In order for a business to not close out, they have to make the product more expensive than the cost it is made in order to make money.
• Credit: Credit is when you use someone else's money to buy something now, and then pay it later. This could be through a loan, credit card, or just borrowing from a friend. A credit card will charge interest in order for them to make a profit. Always pay back the money you borrow, or you won't be able to get a loan!

• Interest: Interest is a percent added or taken away from your income. This could be taxes like retirement or insurance. Interest can also be added to what you pay, like sales tax or property tax. Interest can also be good, like interest added to the money in your banking account.