Financial Literacy 1
Things that would be nice to have, but you can live without
What are wants?
What is financial literacy?
Understanding how money works, skills such as budgeting, earning, spending, and saving
What is budgeting?
A plan on how to spend money. Needs before wants.
Spending money that is allotted for in your budget.
Planned spending
total amount of a good or service
supply
Things that are essential and you cannot live without.
needs
One of the words that means the money you earn at a job.
wages, income, salary
A card that lets you pay for things electronically, directly from your personal bank account
What is a debit card?
Give an example of unplanned spending
flat tire, field trip, a friend invites you to the circus, boiler breaks,
How much of something that people want
demand
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.
To keep or put away money for future use.
To save
Skills, education, or training a person has to make them more employable
Human capital
Not enough to meet the demand
scarce
labor
When you use credit to purchase something you usually end up paying ________ than the item costs.
More or less
More
Things you spend money on
What are expenses?
the numerical value or amount
value
A word that means the cost of borrowing.
Interest
What is interest?
Money charged or borrowing money.
What is a credit score?
Like an adult report card that show you are (or are not) financially responsible.
If Drake borrowed $1,500 from Nicki, at a 5% interest rate,. how much will her end up paying back in total?
$1575
what is a lender
a person or bank that allows you to borrowed money from them