Financial Literacy 1
A financial institution that accepts deposits from the public.
A Bank
The knowledge and application of various financial skills.
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?
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 in interest.
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
A job or profession
What is occupation?
The amount someone earns in a year for 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?
The money that you pay the bank for your house
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 limit. Should Johnny use his credit card to buy a PlayStation? Why or why not?
NO! Johnny should not use his credit card because he does not have enough money in his checking account. A person should never borrow money if they do not have the same amount in their checking account.
The money you earn at your job before the tax man gets to it.
What is gross income?
A plan for earning and spending over a period of time.
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 owed from one person to another person/an institution
What is a debt?
an account that you put your savings into
What is a savings account?
The tax that you pay on items at a store
What is sales tax
A tax on foreign goods
An individual retirement account
What is an IRA?
The maximum amount of credit a financial institution extends to a client on a credit card.
What is credit limit?
An account that you put the money you want to spend into
What is a checking account
The score given by a credit agency regarding your ability to pay off a debt.
What is a credit rating/score?
a nonprofit institution for you to store your money that has lower rates on loans but smaller loans to give out
What is a credit union?