Intro to Financial Literacy
What is a Budget?
A budget is a plan for managing income and expenses.
Something that is essential for survival.
What is A Need.
A person who purchases a product with the intent to resell or regift it.
What is a customer.
True or False: You should choose a college based on your friends.
False.
The ability to borrow money or access goods or services with the agreement to pay later.
What is Credit.
The money received, typically from work, investments, or other sources.
Income
What is the difference between fixed and variable expenses?
Fixed expenses are constant monthly costs, while variable expenses change month-to-month.
Laws and measures designed to safeguard buyers from unsafe products or unfair practices.
What is Consumer Protection.
Name two factors to consider when choosing a career.
Salary potential and job satisfaction.
What is the highest credit score a person can have?
What is an 850.
What is a liability in finance?
A financial debt. Something someone owes
A savings account set aside for unexpected expenses.
What is an Emergency Fund
Name 2 types of Consumer Rights
Right to safety, Right to be heard, Right to choose, Right to be informed
A document that showcases your skills, experiences, and education to potential employers.
What is a Resume.
The cost of borrowing money, calculated as a percentage of the loan amount.
What is Interest
What is one potential consequence of lacking financial literacy?
Describe the 50/30/20 budgeting rule.
It allocates 50% of income to needs, 30% to wants, and 20% to savings.
Refers to small, often overlooked text in an advertisement or contract that includes important details or restrictions about a product or offer.
What is the Fine Print.
Money borrowed to pay for education, which must be repaid with interest.
What is a Student Loan.
What is the different Between credit and debit?
The main difference between credit and debit is that a debit card withdraws money directly from your bank account, while a credit card allows you to borrow money up to a certain limit, which you pay back later, often with interest if not settled by the due date.
The knowledge and skills needed to manage financial resources effectively.
What is Financial Literacy
Name the 4 main types of economic systems and describe each one.
Traditional Economy: This system relies on customs and traditions to make economic decisions, commonly seen in rural or agricultural communities.
Command Economy: The government controls all aspects of the economy, deciding what goods are produced, how, and for whom, as seen in countries like North Korea.
Market Economy: In this system, individuals make economic decisions based on supply and demand with minimal government intervention, as in the United States.
Mixed Economy: This combines government regulation with private enterprise, allowing both market freedom and state involvement.
What does misleading advertising mean?
Advertisements that deceive or misrepresent a product's quality or capabilities.
The initial perception or judgment someone forms about a person, place, or thing based on their first encounter or interaction.
What is a First Impression
What does APR stand for, and how does it impact the cost of borrowing money?
APR stands for Annual Percentage Rate, which represents the annual cost of borrowing, including both the interest rate and any associated fees. It helps consumers understand the true cost of a loan, making it easier to compare different borrowing options.