Financial Literacy 1
Chase and Wells Fargo
What are Banks?
A financial institution that accepts deposits from the public.
What is a Bank?
The abbreviation for an Automated Teller Machine?
What is an ATM?
When you take money out of your bank account.
What is a withdrawal?
This term refers to a financial account where you can deposit money and earn interest over time.
What is a savings account?
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.
What is a Paycheck?
A thing that is borrowed, especially a sum of money that is expected to be paid back in interest.
What is a Loan.
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?
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?
The lowest hourly wage a employer can pay their employee.
What is the minimum wage?
The knowledge and application of various financial skills.
Money owed from one person to another person / an institution.
What is a debt?
This term describes the practice of putting money aside regularly to achieve specific financial goals, such as buying a car or going to college."
What is a savings goal?
A plan for earning and spending over a period of time.
What is a budget?
Identified by its specific location on the bottom left of a check, this area is where you sign your name to authorize payment.
What is the signature line?
The maximum amount of credit a financial institution extends to a client on a credit card.
What is credit limit?
In filling out a check, this area requires you to write out the payment amount in words.
What is the ‘amount in words’ or ‘legal amount’ line?
A type of bank account that allows you to easily deposit and withdraw money for daily transactions
What is a Checking Account?
Name 2 ways to improve your financial literacy.
Start budgeting, read about finances, take a personal finance class, set financial goals, etc.
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 a 0 by the end of the month.
The score given by a credit agency regarding your ability to pay off a debt.
What is a credit rating/score?
In personal finance, this term describes a record of how well you manage your debts and repayments.
What is credit history?
This term describes using money to purchase assets with the expectation of generating income or profit over time
What is investing?