Financial Literacy 1
A product issued to consumers that is used to make purchases, with the agreement that the cardholder will ultimately pay back the 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?
This number shows how much money the employee actually takes home after all deductions.
What is net pay?
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?
Chase and Wells Fargo are examples of...
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?
These are two types of bank accounts—one used for everyday spending and bills, and one used to deposit money and earn interest.
What are a checking account and 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?
Paying just this on a credit card can hurt your credit over time and keep you paying for a long time.
What is the minimum payment?
A plan for earning and spending over a period of time.
What is a budget?
Money you earn or receive, like from a job, allowance, or gifts.
What is income?
The maximum amount of credit a financial institution extends to a client on a credit card.
What is credit limit?
This is the total amount of money earned before any taxes or deductions are taken out.
What is gross pay?
This tax is required by the federal government and is based on how much income you earn.
What is federal income tax?
This deduction helps fund retirement and is often matched by an employer.
What is a 401(k)?
These are two government programs under FICA taken out of your paycheck. They help retirees, people with disabilities, and older adults with healthcare.
What are Medicare and Social Security?
This is the typical range of numbers used to measure how good your credit is, from very poor to excellent.
What is 300 to 850?
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?