Financial Literacy Vocab

Banking

100

An account that helps you save money and earns interest over time. 

Savings Account

200

An account used for daily transactions like paying bills, making purchases, and withdrawing cash.

Checking Account

300

I order to track your income and expenses you should create a ...?

Budget

400

What are 3 types of fees you may be charged from  your bank

overdraft

Using ATM's outside the network

Low account balances

Paper statements

Not following the contract you agreed to such as not enough deposits, withdraws, etc.

Writing a check

Using a Cash App 

500

Short Term or long term these help you stay motivated and focused on managing your money

Financial Goals

Budgeting

100

Real or virtual movement of money, income minus expenses

Cash Flow

200

Expenses that remain the same each month

Fixed Expenses

300

A situation where there is not enough money to cover expenses

Budget Deficit

400

Amount of money set aside (typically 6 months)

Emergency Fund

500

Money owed to individuals, businesses or institutions

Liabilities

mixed bag

100

What does ATM stand for

Automated Teller Machine

200

An account that uses a debit card

Checking account

300

Borrow money from the bank to make purchases, pay back with interest

Credit Card

400

Expenses that change each month and can be reduced or eliminated

Flexible expenses

500

Setting money aside to increase wealth over time and accumulate funds for long-term financial goals

Investing

Credit

100

Percentage the bank pays you for keeping money in a savings account or charges you for borrowing money

Interest Rate

200

A numerical representation of your creditworthiness. Determines if lenders should give you credit or not and on what terms

Credit Score

300

This is a calculated not only on initial amount but also on any accumulated interest. Help your savings grow faster

Compound Interest

400

Making purchases without comparing costs or benefits first

Impulse Spending

500

The total value of a person or company which can be calculated by subtracting liabilities from total assets

Net Worth

Personal Finance

100

Anything owned by an individual-liquid cash-

Assets

200

Money is left over after all obligations have been paid

Budget Surplus

300

Money you have to spend or save as you wish after taxes and other required deductions.

Disposable income 

 Bonus 300 points- What is the difference between Disposable income and take home pay

400

Money earned in exchange for work, investments, allowance, or gifts

Income

500

The ability to understand and effectively use various financial skills, including personal financial management, budgeting and investing

Financial Literacy