Financial Literacy 1
A financial institution that accepts deposits from the public.
A Bank
The knowledge and application of various financial skills.
What is financial literacy?
Something that you spend money on, either one time or regularly.
What is an expense?
The money you earn from your job after the tax man gets to it.
What is net 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?
A bank card that automatically deducts the amount of a purchase from your checking account.
What is a debit card?
A minimum amount of income you do not pay taxes on. (Amount that goes above is taxable)
What is basic "personal" amount?
Service that allows employer to deposit your pay into your account.
What is direct deposit?
An agency that collects info about how we use credit.
What is Credit Bureau?
A specific type of loan that is used to buy real estate (a home or other property).
What is a Mortgage?
Johnny really wants the new Playstation 5, which costs 800.00. Johnny has $20.00 in his bank account. However, he just received a credit card with a $2,500 limit. Should Johnny use his credit card to buy a PlayStation? Why or why not?
NO! Johnny should not use his credit card because he does not have enough money in his checking account. A person should never borrow money if they do not have the same amount in their checking account or a plan to pay it back.
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 loan that is repaid with a specific number of fixed payments (like a car or student loan)
What is installment credit?
The process of combining multiple debts into a single monthly payment, usually through a new loan or credit card with a lower interest rate.
What is debt consolidation?
A type of bank account that allows you to easily deposit and withdraw money for daily transactions
A Checking Account
The amount of money 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 system for buying and selling shares of companies
Stock Market
The score given by a credit agency regarding your ability to pay off a debt.
What is a credit rating/score?
Document that proves your income and shows the amount of your refund or balance owing.
What is Notice of Assessment?