Financial Literacy 1
A financial institution that accepts deposits from the public.
A Bank
What are the benefits of financial literacy?
Less debt, higher net worth, less financial struggle, improved household finances
Whats the abbreviation for an Automated Teller Machine?
ATM
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.
Name 3 components of financial literacy.
Literacy, net worth, income (active, passive, etc.), saving money, investing, budgeting, taxes, debt.
What the name for a paper document issued by an employer to pay an employee for services rendered.
A paycheck
When you put money into your bank account.
What is a deposit?
A card issued by the bank that allows the holder to transfer money electronically to another account when making a purchase.
Debit Card
Name 2 ways to improve your financial literacy.
Start budgeting, read about finances, take a personal finance class, set financial goals
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.
A plan for earning and spending over a period of time.
What is a budget?
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.
What is the difference between a bank and a credit union?
A bank is for profit and a credit union is not for profit.
Name 3 banking institutions in your neighborhood.
Wells Fargo, CHASE, PMC, TD Bank, Philadelphia Credit Union.
A type of bank account that allows you to easily deposit and withdraw money for daily transactions
A Checking Account
What is an excellent credit score number?
720 or above
Suppose you have $100 dollars in a savings account earning 2% interest a year. After 5 years, how much money would you have?
A. More than $102
B. Exactly $102
C. Less than $102
A. More than $102
$100x.02x5=$10
It should be $0.00 by the end of the month.
What items should you buy with your Credit Card?
Needs. Groceries, Gas, Clothes, and Shoes. (If Necessary!).