What are Needs?
Things you must have to live (like food, water, clothes, house)
Needs are essential for survival.
What are Wants?
Things you like but don’t need (like toys, candy, fancy shoes)
Wants are non-essential items that enhance life but are not necessary.
What should smart people do before spending on wants?
Buy their needs first
Prioritizing needs ensures basic survival before indulging in non-essentials.
What is Money?
Coins and notes used to buy things, replacing barter
Money simplifies transactions compared to trading goods directly.
What are the uses of Money?
- Buy stuff
- Save for later
- Pay bills
Money serves multiple purposes in personal finance.
How can you keep money safe?
In a money box or in a bank
Banks provide a secure environment for savings.
What services do banks provide?
- Save money
- Lend money
- Pay bills
Banks play a crucial role in managing finances.
What are the ways to pay for things?
- Cash
- Cheque
- EFTPOS/Card
- Phone money like M-PAiSA
Various payment methods cater to different consumer preferences.
Who is a Consumer?
Someone who buys or uses stuff
Consumers play a vital role in the economy.
What rights do consumers have?
- To be safe
- To choose
- To be treated fairly
Consumer rights protect individuals in the marketplace.
What responsibilities do consumers have?
- Be smart
- Don’t litter
- Think before buying
Responsibilities ensure consumers make informed choices.
What should you do to shop wisely?
- Make a shopping list
- Check prices
- Avoid impulse buying
Smart shopping habits can lead to better financial decisions.
What is Cash Buying?
Pay now, take now
Cash buying involves immediate payment for goods.
What is Credit Buying?
Take now, pay later (but you pay more)
Credit buying can lead to higher costs due to interest.
What is Income?
Money you GET
Income is crucial for financial stability.
What are common sources of Income?
- Job (wages, salary)
- Rent
- Selling things
- Gifts or remittance
Diverse income sources can enhance financial security.
What are Expenses?
Things you SPEND money on
Understanding expenses is essential for budgeting.
What are Regular Expenses?
Happen often (like food, rent, bus fare)
Regular expenses are predictable and should be budgeted for.
What are Irregular Expenses?
Happen sometimes (like birthday party, medicine)
Irregular expenses can be more challenging to plan for.
Fill in the blank: Make sure to spend less than you ______.
earn
Living within your means is essential for financial health.
