Personal Finance Vocabulary Worksheet

Name: _____________________________

Date: _____________________________

Part 1: Match the Terms

Match each personal finance term with its correct definition by drawing a line or writing the letter next to the number.

1. Income
   
   
   
2. Expense
   
   
   
3. Budget
   
   
   
4. Saving
   
   
   
5. Investing
   
   
   
6. Credit
   
   
   
7. Debt
   
   
   

A. Money that an individual or business receives.

B. The cost required for something; the money spent on something.

C. An estimate of income and expenditure for a set period of time.

D. The money one has saved, especially through a bank or investment plan.

E. The action or process of investing money for profit or material result.

F. The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.

G. A state of owing money.

Part 2: Short Answer

8. Give an example of something you might consider an income for a high school student. Explain why.
   
   
   
   
   
   

9. What is the difference between saving and investing?
   
   
   
   
   
   
   
   
   
   
   

10. Why is creating a budget important for managing your money?
    
    
    
    
    
    
    
    
    
    
    

Personal Finance Vocabulary Answer Key

Part 1: Match the Terms

1. Income: A. Money that an individual or business receives.

   • Thought Process: Income is literally the money that 'comes in' to you.

2. Expense: B. The cost required for something; the money spent on something.

   • Thought Process: Expenses are things you 'spend out' money on.

3. Budget: C. An estimate of income and expenditure for a set period of time.

   • Thought Process: A budget helps you plan and track your money over a specific period, balancing what you earn and what you spend.

4. Saving: D. The money one has saved, especially through a bank or investment plan.

   • Thought Process: Saving is setting money aside for future use or goals, usually in a secure place like a bank.

5. Investing: E. The action or process of investing money for profit or material result.

   • Thought Process: Investing means putting money into something with the expectation of getting more money back in the future, often involving some risk.

6. Credit: F. The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.

   • Thought Process: Credit is about borrowing now and promising to pay back later, building trust in your ability to repay.

7. Debt: G. A state of owing money.

   • Thought Process: Debt is the financial obligation, the money that you are legally required to pay back to someone else.

Part 2: Short Answer

8. Give an example of something you might consider an income for a high school student. Explain why.
   
   
   
   
   
   

   • Possible Answer: A part-time job at a local store. This is income because the student receives money in exchange for their work or services.

9. What is the difference between saving and investing?
   
   
   
   
   
   
   
   
   
   
   

   • Possible Answer: Saving is putting money aside, usually in a safe place like a bank account, for future use. The goal is to keep the money secure and accessible. Investing is using money to buy assets (like stocks or real estate) with the expectation that its value will grow over time, potentially earning more money, but it also carries more risk.

10. Why is creating a budget important for managing your money?
    
    
    
    
    
    
    
    
    
    
    

    • Possible Answer: Creating a budget is important because it helps you understand where your money is coming from (income) and where it's going (expenses). This allows you to make conscious decisions about your spending, ensure you don't overspend, and work towards financial goals like saving for something specific.

Finance Vocab Journal: My Financial Journey

Name: _____________________________

Date: _____________________________

Reflect and Connect: Your Financial Future

Think about the personal finance vocabulary we discussed today. How do these words connect to your life and future aspirations?

Choose one or two of the prompts below and write a thoughtful response. Be honest about your current understanding and how you envision these concepts playing a role in your life.

Journal Prompts:

1. My Money Map: Imagine you receive a significant amount of money (e.g., $500 as a gift or from a summer job). How would you use the terms income, expense, budget, and saving to manage this money responsibly? Describe your plan.
   
   
   
   
   
   
   
   
   
   
   

2. Future Goals & Finance: What is a future goal you have (e.g., buying a car, going to college, traveling, starting a business)? How might saving and investing help you achieve this goal? What role could credit or debt play, and how would you approach them carefully?
   
   
   
   
   
   
   
   
   
   
   

3. Financial Decisions: Think of a time you or someone you know had to make a financial decision (big or small). Which of the vocabulary terms were involved in that decision? How did understanding those terms (or perhaps lacking understanding) impact the outcome?
   
   
   
   
   
   
   
   
   
   
   

4. A Term That Stands Out: From today's lesson, which personal finance vocabulary term resonated most with you, and why? How do you see yourself applying this specific term in your life in the near or distant future?
   
   
   
   
   
   
   
   
   
   
   

Personal Finance Vocabulary Worksheet

Name: _____________________________

Date: _____________________________

Part 1: Match the Terms

Match each personal finance term with its correct definition by drawing a line or writing the letter next to the number.

1. Income
   
   
   
2. Expense
   
   
   
3. Budget
   
   
   
4. Saving
   
   
   
5. Investing
   
   
   
6. Credit
   
   
   
7. Debt
   
   
   

A. Money that an individual or business receives.

B. The cost required for something; the money spent on something.

C. An estimate of income and expenditure for a set period of time.

D. The money one has saved, especially through a bank or investment plan.

E. The action or process of investing money for profit or material result.

F. The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.

G. A state of owing money.

Part 2: Short Answer

8. Give an example of something you might consider an

Personal Finance Vocabulary Answer Key

Part 1: Match the Terms

1. Income: A. Money that an individual or business receives.

   • Thought Process: Income is literally the money that 'comes in' to you.

2. Expense: B. The cost required for something; the money spent on something.

   • Thought Process: Expenses are things you 'spend out' money on.

3. Budget: C. An estimate of income and expenditure for a set period of time.

   • Thought Process: A budget helps you plan and track your money over a specific period, balancing what you earn and what you spend.

4. Saving: D. The money one has saved, especially through a bank or investment plan.

   • Thought Process: Saving is setting money aside for future use or goals, usually in a secure place like a bank.

5. Investing: E. The action or process of investing money for profit or material result.

   • Thought Process: Investing means putting money into something with the expectation of getting more money back in the future, often involving some risk.

6. Credit: F. The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.

   • Thought Process: Credit is about borrowing now and promising to pay back later, building trust in your ability to repay.

7. Debt: G. A state of owing money.

   • Thought Process: Debt is the financial obligation, the money that you are legally required to pay back to someone else.

Part 2: Short Answer

8. Give an example of something you might consider an