Financial Literacy 1
Things that would be nice to have, but you can live without
What are wants?
What is financial literacy? (word-for-word definitions only)
The ability to understand and effectively use various financial skills. (i.e: personal finances, budgeting, investing)
What is budgeting?
A plan on how to spend money. Needs before wants.
Things you spend money on
What are expenses?
A bank account that lets you write checks, pay bills and do other personal money tasks
What is a checking account?
A bank account that pays you interest on the money you put into it
What is a savings account?
A card that lets you pay for things electronically, directly from your personal bank account
What is a debit card?
Financial institution that holds cash, lends money and provides other money services
What is a bank?
A plan for earning and spending over a period of time.
What is a budget
A thing that is borrowed, especially a sum of money that is expected to be paid back with interest
What is a loan.
Name 2-3 ways to improve your financial literacy?
Start budgeting, saving, planning for your future.
What is compound interest?
Interest on interest.
A safety net that protects you from unexpected accidents.
What is an emergency fund.
Using a tablet or smartphone to do your banking
What is mobile banking/ e-banking
I have enough money to pay the balance on my credit card, but I just pay the minimum monthly payment. Is that the best financial decision?
What is no.
What is interest?
Monetary charges the privilege of borrowing money.
What are the three components of a thesis statement?
Clear claim, clear assertion, 3 reasons
If Drake borrowed $10,000.00 from Nicki, with a 5% interest rate for each day the repayment is late, how much money would he owe her if he is 5 days late?
$12,500.00
10,000= on time
10,500= day one
11,000 = day two
11,500 = day three
12,000 = day four
12,500 = day five
Dealing with your needs first, then your wants
What is budgeting?