Financial Literacy Essentials
Bank Account A charges a $10 monthly maintenance fee with no minimum balance. Bank Account B charges $0 monthly if you keep at least $500 in the account. If Maya keeps a balance of $750, this account will cost her less money per month.
What is Account B
When you swipe this card at a register, money is deducted directly and immediately from your checking account.
What is a debit card?
Unlike a student loan, this form of college financial aid based on merit or achievement does not have to be paid back.
What is a scholarship
Option A offers "$5 off a $20 purchase." Option B offers "20% off a $20 purchase." This coupon saves you more money.
What is Option A ($5 off)? (20% of $20 is $4 off)
A $40 sweater is on sale for 25% off. This is the dollar amount of the discount.
What is $10
In the simple interest formula $I = P x r x t, the letter P stands for this term, which represents the initial amount of money deposited or borrowed.
What is Principal
In a check register, you record this specific word (or operation) whenever you deposit money into your checking account.
What is addition (or adding to the balance)?
Using this card is essentially taking out a short-term loan from a company that you must pay back later, often with interest if not paid in full.
What is a credit card?
This type of financial assistance is usually based on financial need and, like scholarships, does not require repayment.
What is a grant
A 12-ounce box of cereal costs $3.60. This is the unit price per ounce.
What is $0.30 (or 30 cents) per ounce? ($3.60 ÷ 12)
The meal at a restaurant costs $30.00. If you leave an 18% tip, this is the total tip amount.
What is $5.40? ($30 × 0.18)
In the simple interest formula, the rate (r) must always be converted from a percentage into this format before multiplying.
What is a decimal (or fraction)?
You start with $120.00 in your check register. You write a check for $35.50 at the store and make a deposit of $15.00. This is your new account balance.
What is $99.50
This numerical score, typically ranging from 300 to 850, indicates to lenders how responsibly you manage and repay borrowed money.
What is a credit score
Generally, as a worker's level of education or specialized training increases, this economic factor also tends to increase.
What is earning potential (or income/salary)?
A 2.5-pound bag of apples costs $4.00. This is the unit price per pound.
What is $1.60 per pound? ($4.00 ÷ 2.5)
A pair of shoes originally costs $80. If it is marked down by 30%, this is the final sale price before tax.
What is $56.00? ($80 × 0.70)
You deposit $500 into a savings account with a simple interest rate of 4% per year. This is the interest earned after 1 year.
What is $20.00? ($500 × 0.04 × 1)
If you write a check or make a transaction for more money than you actually have in your account, your bank will charge you this type of penalty fee.
What is an overdraft fee (or NSF/insufficient funds fee)?
Name two key pieces of information typically found on a individual's credit report.
What are payment history, total outstanding debt, credit accounts opened, bankruptcy records, or credit inquiries? (Accept any two)
This college funding option allows students to work part-time jobs on campus to help pay for their education expenses.
What is a work-study program
Store A sells 1/2 pound of almonds for $3.00. Store B sells 1.5 pounds of almonds for $8.25. This store has the lower price per pound.
What is Store B? (Store A = $6.00/lb; Store B = $5.50/lb)
A store purchases a skateboard wholesale for $50 and marks it up by 40% before selling it. This is the retail selling price.
What is $70.00? ($50 + $20 markup)
A loan of $1,000 is taken out at a simple interest rate of 5% per year for 3 years. This is the total amount of interest charged.
What is $150.00? ($1,000 × 0.05 × 3)
Account A charges $2.50 for using out-of-network ATMs but has no monthly fee. Account B charges $0 for all ATMs but has a $5.00 monthly fee. If you use out-of-network ATMs 3 times each month, this account is cheaper overall.
What is Account B? (Account A = 3 × $2.50 = $7.50; Account B = $5.00)
Doing this action regularly on your credit card accounts will negatively impact your credit score and remain on your credit report for up to 7 years.
What is making late payments (or defaulting/missing payments)?
A electrician earns $55,000 per year with a 2-year trade degree. A civil engineer earns $85,000 per year with a 4-year degree. Over a 10-year career, this is the income difference between the two occupations.
What is $300,000? (($85,000 - $55,000) × 10 = $300,000)
A 2-quart container of juice costs $3.20. Knowing there are 4 cups in a quart, this is the unit price per cup.
What is $0.40 (or 40 cents) per cup? (2 quarts = 8 cups; $3.20 ÷ 8 = $0.40)
After receiving a 20% discount, the sale price of a jacket is $48.00. This was the original price of the jacket.
What is $60.00? ($48 ÷ 0.80)
You invest $2,000 at a 3% simple interest rate per year for 5 years. This is the total balance of your account (principal plus interest) at the end of the 5 years.
What is $2,300.00? (Interest = $2,000 × 0.03 × 5 = $300; $2,000 + $300 = $2,300)
Consumer Math Master Challenge:
You buy a backpack with an original price of $50 that is on sale for 20% off. If your local sales tax rate is 6%, this is the final total amount you will pay at the register.
What is $42.40?
(Work: Sale price = $50 × 0.80 = $40.00. Tax = $40.00 × 0.06 = $2.40. Total = $40.00 + $2.40 = $42.40)