Financial Literacy 1
A financial institution that accepts deposits from the public.
A Bank
Most payment plans are based on this and a credit check will be done.
What is "On Approved Credit" or a credit check?
Something that you spend money on, it could be fixed or variable.
What is an expense?
Money you receive for doing work or from investments.
What is income?
A percentage of the amount you borrowed, increasing the total amount you have to pay back in the end.
What is interest rate?
Money that is loaned or borrowed, that needs to be paid back, often times with interest (additional fees).
Credit
The money charged for the privilege of borrowing money.
What is interest?
A portion of money paid to the government out of your paycheck for services that benefit the country. This takes your Gross income and makes it your Net income.
What is income tax?
What could happen if you do NOT pay on time in a payment plan?
You pay high interest on your bill.
What is a maintaining a budget?
The actual purchase price
What is a principal?
The cost for borrowing money.
What is Interest?
A plan that lets you pay for a big amount in small pieces
What is an installment?
The money you earn at your job before taxes are deducted.
What is gross income?
A plan for earning and spending over a period of time.
What is a budget?
A card used to make purchases with the agreement that the cardholder will pay back the card issuer for the purchases and any fees and interest
What is a credit card?
Money owed from one person to another person or company. A debit card helps avoid this.
What is a debt?
Money received from working a Job or Career
What is Income or Wages
The money you earn from your job after the taxes are deducted
What is net income?
A share in the partial ownership of a company, giving investors a claim on part of its assets and earnings
What is stock?
Those Expenses you must pay from month every month; Rent; Car Payment; Electric; Food
What are Fixed Expenses
•Expenses that change from month to month; For instance Dining out, shopping for clothes, Toiletries
What are Variable Expenses
Paying for something
What is a purchase or a transaction?
The 50/30/20 Budget rule splits monthly income into 3 categories.
What are Needs (50%), Wants (30%) and Savings (20%)
In order to spend less, you should do this before making big purchases
What is compare prices and price matching?