Financial Literacy 1
What a person owns of value.
Assets
It occurs when the price of goods and services are rising.
Inflation
Money earned from working and other means.
Income
Buying stuff without thinking about whether or not you need it.
Impulse Buy
Things that are made to be sold.
Goods
A place where people put their money for safekeeping, and for ease of use.
Bank
The knowledge and skills to manage money.
Financial Literacy
Opposite of Income.
Expense
A person who starts his or her own business.
Entrepreneur
It is like a bank and owned by the members.
Credit Union
A loan that a person uses to pay for things, but is expected to pay back.
Credit
This rule is a budegting method that splits your income into needs, wants, and savings.
50/30/20 Rule
Giving resources or volunteering to help those in need.
Charity
What is calculated on the prinicpal and interest that has been accumilated over time?
Compound Interest
A spending plan that predetermines how your money will be spent.
Budget
Something you would like to have but can live without.
Want
Something you truly cannot live without.
Need
The total amount of money you can charge to your credit card.
Credit Limit
Fees placed on income, purchases, or property to support government programs.
Taxes
An activity or action that might be dangerous.
Risk
A three digit numerical rating of how likely you are to pay off your debts.
Credit Score
What is calculated based on the principal amount?
Simple Interest
The cost we give up when we choose something else.
Opportunity Cost
Refers to how easy it is to access your money.
Liquidity
What is the cost of borrowing money or the reward for saving or investing money ?
Interest