Financial Literacy 1
A DEPOSITORY institution is licensed to receive deposits and make loans.
What is a BANK?
The knowledge and application of various financial skills.
What is financial literacy?
What is a FINANCIAL GOAL?
The money you receive from your job
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?
A thing that is borrowed, especially a sum of money that is expected to be paid back in interest.
The money charged for the privilege of borrowing money.
What is interest?
an automatic loan made to an account if the balance will not cover checks written.
written orders to a bank to pay a certain amount of money from a checking account to another person or business
What is a CHECK?
A report of deposits, withdrawals, and bank balances sent to a depositor by a bank
What is BANK STATEMENT?
A bank card that automatically deducts the amount of a purchase from your checking account.
What is a debit card?
A specific type of loan that is used to buy real estate (a home or other property).
What is a Mortgage?
EVERYTHING an individual or household owns with monetary value
What is an ASSET?
The money you earn at your job before the tax man gets to it.
What is gross income?
A plan for earning and spending over a period of time.
What is a budget?
a card issued to consumers that is used to make purchases, with the agreement that the cardholder will ultimately pay back the card issuer for the cost of the items purchased, along with any agreed upon fees and interest
What is a credit card?
Money owed from one person to another person/an institution
What is a debt?
a computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents.
What are ELECTRONIC FUNDS?
The money you earn from your job after the tax man gets to it.
What is net income?
A type of bank account that allows you to easily deposit and write orders to withdraw money for daily transactions.
What is a Checking Account?
The initial amount of money invested or borrowed.
What is the PRINCIPAL?
The maximum amount of credit a financial institution extends to a client on a credit card.
What is credit limit?
A targeted intention that is specific, measurable, achievable, realistic, and time-bound.
What is a S.M.A.R.T. Goal?
A portion of current income not spent on consumption.
What is SAVINGS?
How quickly and easily assets can be accessed and converted into cash.
What is LIQUIDITY?
A type of account that pays a higher interest rate than a savings account.
What is a MONEY MARKET ACCOUNT?
A popular and very effective saving strategy that can help individual's choose saving over spending money.
What is PAY-YOURSELF-FIRST?
Giving up one thing for another.
What is a TRADE-OFF?
A nonprofit financial institution that is owned by its members and organized for their benefit
What is a CREDIT UNION?
A court ruling that requires that money be deducted from a person's paycheck involuntarily in order to pay a debt.
the signature of the payee written exactly as his or her name appears on the front of the check
What is a BLANK ENDORSEMENT?
an endorsement that transfers the right to cash the check to someone else
An automatic deposit of a paycheck without having to take a physical check to the bank.
A fund that pools the savings of many individuals and invests this money in a variety of stocks, bonds, and other financial assets
What is a MUTUAL FUND?
represents money you have authorized your bank or other organization to move from one account to another at regular intervals
What is an AUTOMATIC DEPOSIT?