Financial Literacy 101
Having a plan on how to spend, save and invest is called
Budgeting
these are expenses that occur sometimes...may need to be made one month and not the other months..most likely "want" expenses
variable expense
an institution that stores your money safely
Bank
Debit card
late fees
money set aside for unexpected expenses is called having an _______________
emergency fund
Understanding money and how to use it wisely is called
Financial Literacy
to be smart with money we must always distinguish between ________ vs __________
need, want
like a reward given to you by the bank for putting your money there and trusting them with your money.
interest
Interest earned only on the original amount of money (principal) saved
simple interest
the smallest required monthly payment towards your credit card charges is called
minimum payment
when you approach the bank to borrow money it is called a __________
loan
As a teen name 2 ways that you can earn money
answers may include...allowance, part time job, being paid for chores, monetary gifts given
this rule states that income/money should be divided this way (needs, wants, savings)
50/30/20
the act of putting in your money in a bank can be done at the atm's or bank branch
deposit
Interest earned on both the original amount and any interest already earned.
Compound interest
Certain credit cards will offer reward programs where in you can earn points or airline ________. To make it more tempting to sign up with them instead of another credit card company.
miles
What does ATM stand for
automated teller machine
Things you spend money on are called
expenses
______________isn't as exciting as spending money
saving money
A ____________ is the act of removing money or funds from a bank account, such as a checking or savings account, by either receiving physical cash, having funds transferred to another account, or making a payment for a purchase or bill.
withdrawal
money owed to anyone is called
debt/ credit
Credit card is money you ____________ from the company(VISA/MASTERCARD/ AMEX)and does not need to have an account linked to it.
borrow
When you use your debit card to pay it may require you to enter this
PIN- Personal Identification Number
things you spend money on every month or regularly..these are mostly needs is called
fixed expenses
_______________this heavily influences where and what you spend your money on.
advertising
The two main kinds of bank accounts are ___________ accounts (for everyday spending and transactions) and savings accounts (for saving money and earning interest).
Checking/current
this is the most that your credit card will allow you to borrow from them
credit limit
A number that shows how trustworthy you are at paying back money that you owe
credit score
______________ means spending your full credit card's limit which can also affect your credit score negatively
maxing out
zelle, venmo, pay pal and cash apps are all examples of
EFT's electronic money transfers
money earned from a job, allowance, gift is called
income
The trade off or cost of giving up one choice for another is called
opportunity cost
Different credit cards charge different _______________ on money owed to them. Some may go as high as 20 percent.
interest rates
Credit cards charge an Annual/yearly interest rate on your balance called____________; this is different for each credit card and may go up according to your usage
APR Annual Percentage Rate
It is important to pay your credit card in full monthly, if you don't then you will be charged ____________
interest