FINANCE
What is money you receive from your job called?
Income
What does it mean to invest money?
Put money into something with the goal of earning a return.
Where do people usually keep their money safely?
Bank
What is a credit card used for?
Borrowing money to make purchases and paying it back later.
What is profit?
Money left after subtracting costs from revenue.
What do we call a plan for how you will spend your money?
Budget
What is a share of ownership in a company called?
Stock
What do banks charge when you borrow money?
Interest
What does it mean to be in debt?
You owe money to someone or an institution.
What is inflation?
A general increase in prices over time.
If you earn AED 10,000 and spend AED 7,000, how much can you save?
AED 3,000
What is the potential reward from an investment called?
Return
What is a loan?
Money borrowed that must be repaid, usually with interest.
True or False: Paying bills on time can help your credit history.
True
What is revenue?
Money a business receives from selling its products or services.
Why is an emergency fund important?
It helps pay for unexpected expenses.
Why is diversification important?
It spreads risk across different investments.
What is the interest rate?
The percentage charged or earned on money.
What can happen if you continuously make only minimum payments on credit-card debt?
You may pay a lot of interest and take longer to repay the debt.
What is an asset?
Something valuable that a person or company owns.
A person spends more money than they earn every month. What financial problem can this create?
Debt / financial difficulties
You invest AED 10,000 and it becomes AED 12,000. What is your profit?
AED 2,000
If interest rates increase, does borrowing generally become cheaper or more expensive?
more expensive
You borrow AED 5,000 and eventually repay AED 5,800. How much did you pay in interest?
AED 800
What is the main difference between an asset and a liability?
An asset has value/benefit to you, while a liability is an obligation or debt you owe.