Foundations of Financial Literacy
Financial Literacy
What is possession of financial knowledge, a set of basic skills and the ability to apply knowledge and skills to make informed, responsible financial choices.
Financial Competence
What is having the ability to understand basic topics related to finance, such as wisely making, spending, and saving money?
A period of slow or no economic growth.
What is a recession?
Earned Income
What is the income received from employment, including self-employment, wages, salaries, commissions, tips, and bonuses?
Medicare
What is a federal program that pays for certain health-care expenses for older citizens and others with disabilities?
Personal financial planning
What is the process of setting financial goals and developing plans to reach them while meeting financial needs?
Cost-benefit analysis
What is the method of weighing the costs against the benefits of an action, a purchase, or a financial decision?
The amount that is being aid for using money.
What is interest?
Payroll Deduction
What is a subtraction from gross pay?
Medicaid
What is a federal program that pays certain health care costs for eligible, low-income individuals and families?
Value System
What is the overall structure of values and goals that guides a person's behaviors and provides a sense of direction in life?
Marginal benefit
What is the change in total benefit using one additional unit?
A period of rising prices
What is inflation?
Gross Pay
What is the total income before payroll deduction?
Discretionary Expenditure
What is an expense item that can be adjusted according to needs and revenues?
Financial Plan
Law of diminishing marginal utility
What is the marginal benefit of using each additional unit of something tends to decrease as the quantity used increases. law of diminishing marginal utility?
The worldwide spread and integration of production, markets, communications, and technology.
What is Globalization?
Taxable Income
What is the amount on which taxes are calculated?
Indirect Tax
What is a tax that has been levied on one person or entity, but shifted to or paid by another?
Ethics
What are the moral principles or beliefs that direct a person's behavior?
Marginal cost
What is the change in total cost of using one additional unit?
The state of the economy at a given time.
What are Economic Conditions?
Tax Return
What is a report containing information used to calculate taxes owed by the taxpayer?
Regressive Tax
What is the effect of imposing a higher tax rate on those with lower incomes?