module 1 prompts\ncompetency title: money in your teens\ncompetency statement: students will demonstrate an…

module 1 prompts\ncompetency title: money in your teens\ncompetency statement: students will demonstrate an understanding of money in the teenage years by summarizing how you earn money, explaining banking, and comparing spending vs. saving.\n1. explain the difference between gross income and net income. explain which is better to use when creating a budget.\n2. describe the steps to reconcile a checking account.\n3. explain the purpose of budgeting. summarize the steps to creating a budget.\n4. explain why you would, or wouldnt, buy a new car using the information you created in the real - world task 1.04 car costs.

module 1 prompts\ncompetency title: money in your teens\ncompetency statement: students will demonstrate an understanding of money in the teenage years by summarizing how you earn money, explaining banking, and comparing spending vs. saving.\n1. explain the difference between gross income and net income. explain which is better to use when creating a budget.\n2. describe the steps to reconcile a checking account.\n3. explain the purpose of budgeting. summarize the steps to creating a budget.\n4. explain why you would, or wouldnt, buy a new car using the information you created in the real - world task 1.04 car costs.

Answer

Brief Explanations:

  1. Gross income is total earnings before deductions like taxes and benefits, while net income is what remains after deductions. Net income is better for budgeting as it's the actual amount available to spend.
  2. Steps to reconcile a checking account include gathering statements, comparing transactions, accounting for outstanding checks and deposits in - transit, and adjusting for errors or bank fees.
  3. The purpose of budgeting is to manage finances, allocate resources, and achieve financial goals. Steps to create a budget are listing income, listing expenses, setting financial goals, and monitoring and adjusting the budget regularly.
  4. Reasons for buying a new car could include reliability, safety features, and meeting changing needs. Reasons for not buying could be high cost, depreciation, and maintenance expenses. Consideration of net income, savings goals, and long - term financial plans from the budget is important.

Answer:

  1. Gross income is total earnings before deductions; net income is after deductions. Net income is better for budgeting as it's the spendable amount.
  2. Gather statements, compare transactions, account for outstanding items, adjust for errors/fees.
  3. Purpose: Manage finances, allocate resources, achieve goals. Steps: List income, list expenses, set goals, monitor/adjust.
  4. Buying: Reliability, safety, need. Not buying: Cost, depreciation, maintenance. Consider net income and financial plans.