SS - Spending and Saving Overview

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Spending and Saving

Introduction

Now that we’ve learned about how to EARN money, we need to start thinking about what to DO with it! Do we spend it? What kind of fees or taxes should we be aware of? After this module, you will know all about the different types of sales taxes and fees when making purchases.

Or should we maybe put some into savings? Do we just hide cash in an envelope in our sock drawer (don’t do that…) or deposit our money into an interest-earning bank account? You will learn about the different types of banking accounts and how they could actually make your money grow just by depositing it into the bank. Just be mindful of the different fees, interest rates, penalties and minimum balance requirements!

Lesson Preview

In this module, we will study the following topics:

  • Let's Buy Stuff
  • Simple and Compound Interest
  • Decisions with Data
  • Displaying Data

Key Terms

The following key terms will help you understand the content in this module.

  • Annual Interest Rate - the percent of principal that you earn as interest based on a year
  • Checking Account (transactional account) - a deposit account, held at a bank for the purpose of securely and quickly providing frequent access to funds on demand
  • Compound Interest - interest not only earned on the original balance, but also the interest earned during the previous interest period
  • Demand – the ability or willingness to buy a particular commodity at a given point of time
  • Deposit - money placed in a bank account
  • Markup – the difference between the cost of a good or service and its selling price
  • Overdraft fee - when money is withdrawn from a bank account and the available balance goes below zero
  • Principal - the amount of money earning interest
  • Record keeping - maintaining the history of your banking activities by entering data in ledgers, filing away documents, etc.
  • Retail Price – the list price or recommended retail price of a product
  • Savings Account - accounts maintained by financial institutions that pay interest but cannot be used directly as money (i.e. writing a check); these accounts allow customers to set aside a portion of their liquid assets while earning a monetary return
  • Simple Interest - interest paid on the original principal
  • Supply – the amount of a product that is available to consumers
  • Withdrawal - the removal of money from a bank account

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