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?
The abbreviation for an Automated Teller Machine?
What is an ATM?
The money you receive from your job
What is a salary?
When you take money out of your bank account.
What is a withdrawal?
A thing that is borrowed, especially a sum of money that is expected to be paid back in interest.
A Loan
The money charged for the privilege of borrowing money.
What is interest?
What the name for a paper document issued by an employer to pay an employee for services rendered.
A paycheck
The lowest hourly wage a employer can pay their employee.
What is the minimum wage?
When you put money into your bank account.
What is a deposit?
A card issued by a bank that allows the account holder to transfer money electronically to another account when making a purchase.
What is a debit card?
Name 2 ways to improve your financial literacy.
Start budgeting, read about finances, take a personal finance class, set financial goals
350 - 850
Anthony just got out of high school and tried to get a loan for a brand new car without a co-signer. He was denied. Why??
Anthony had no credit history which is like having bad credit
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?
If Santiago bought a football that cost $21.50 and they ended up paying $23.43, what kind of tax did they pay?
What is sales tax?
50-30-20 RULE
50% of your income: needs. Necessities are the expenses you can’t avoid.
30% of your income: wants. Distinguishing between needs and wants isn’t always easy and can vary from one budget to another.
20% of your income: savings and debt. Savings is the amount you sock away to prepare for the future.
When lenders check your credit score because you are trying to get a loan what happens to your credit score
I have enough money to pay the balance of my credit card, but I just pay the minimum monthly payment. Is that the best financial decision? True or False
False
Paying the minimum amount is not the best decision. A person is charged interest when their credit card balance is not at 0 by the end of the month.
The maximum amount of credit a financial institution extends to a client on a credit card.
What is credit limit?
401(k) and IRA
What are retirement accounts?
The score given by a credit agency regarding your ability to pay off a debt.
What is a credit rating/score?
An amount of money that a government requires people to pay according to their income
What are taxes?