Financial Literacy 1
An institution that provides financial services and products to the public.
What is a Bank?
The knowledge and application of various financial skills. Also the name of this class!
What is financial literacy?
Something that you spend money on, either one time or regularly.
What is an expense?
The money you receive from your job.
What is income or salary?
A percentage of the amount you borrowed, increasing the total amount you have to pay back in the end.
What is interest rate?
A thing that is borrowed, especially a sum of money, that is expected to be paid back with interest.
What is a Loan?
The money charged for the privilege of borrowing money.
What is interest?
Money you spend for various things each month (rent, groceries, phone, etc)
Monthly Expenses
Another name for a job or profession.
What is occupation?
The amount someone earns in a year from their job.
What is annual salary?
A bank card that automatically deducts the amount of a purchase from your checking account.
What is a debit card?
A specific type of loan that is used to buy real estate (a home or other property).
What is a Mortgage?
Johnny really wants the new PlayStation 5, which costs 800.00. Johnny has $20.00 in his bank account. However, he just received a credit card with a $2,500 credit limit. Should Johnny use his credit card to buy a PlayStation? Why or why not?
What is NO! Johnny should not use his credit card because he does not have enough money in his checking account to cover the cost of the PlayStation.
The money you earn at your job before taxes and deductions are subtracted.
What is gross income?
A plan for tracking your income (earnings) and expenses (spending) over a period of time, usually on a monthly basis.
What is a budget?
A card issued to consumers that is used to make purchases, with the agreement that the cardholder will ultimately pay back the card issuer for the cost of the items purchased, along with any agreed upon fees and interest.
What is a credit card?
Money you owe that surpasses money you have.
What is a debt?
Fee charged by a bank if you spend more on a debit card than you have in your account.
What is an overdraft fee?
The money you earn from your job after taxes and deductions are subtracted.
What is net income?
A type of bank account that allows you to easily deposit and withdraw money for daily transactions.
What is a Checking Account
An expense that remains the same month after month.
What is a fixed expense?
The maximum amount of credit a financial institution extends to a client on a credit card.
What is a credit limit?
A system for buying and selling shares of companies
What is the Stock Market?
The score given by a credit agency regarding your ability to pay off a debt.
What is a credit rating/score?
A type of bank account you can put money into so you have an emergency fund.
What is a savings account?