What is money?
Money is a common means of payment used to buy things and compare prices.
Income is money that comes in, and an expense is money that goes out. A budget helps plan expenses so they fit the income and goals. Savings is the part of income that you set aside for later.
You received 60 ₪ and spent 35 ₪. 25 ₪ remain that you can save for the next goal.
Think of one savings goal and one expense you can postpone.
Bank of Israel · Financial Education ↗Check your understanding
You received 60 ₪ and spent 35 ₪. How much remains?
- 95 ₪
- 25 ₪
- 35 ₪
Answer and explanation
25 ₪. Subtract the expense from the income: 60 minus 35 equals 25.
What is a budget?
- A plan for income and expenses
- A promise to get rich
- A type of stock
Answer and explanation
A plan for income and expenses. A budget is a plan that helps understand what comes in and where the money goes.
Continue learning
Checking account: the home of daily money — A checking account (OW"S) is a current account: a bank account for everyday transactions.
Stock: a small piece of a company — A stock is a share of ownership in a company.
Profit and loss: reading the numbers — Profit or loss is the difference between an investment’s current value and its cost.