Financial Literacy 1
Chase and Wells Fargo
What are Banks?
A financial institution that accepts deposits from the public.
What is a Bank?
The abbreviation for an Automated Teller Machine?
What is an ATM?
When you take money out of your bank account.
What is a withdrawal?
The money you receive from your job.
What is a salary?
The money charged for the privilege of borrowing money.
What is interest?
What the name for a paper document issued by an employer to pay an employee for services rendered.
What is a Paycheck?
A thing that is borrowed, especially a sum of money that is expected to be paid back in interest.
What is a Loan.
When you put money into your bank account.
What is a deposit?
A card issued by a bank that allows the account holder to transfer money electronically to another account when making a purchase.
What is a debit card?
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?
The lowest hourly wage a employer can pay their employee.
What is the minimum wage?
The knowledge and application of various financial skills.
Money owed from one person to another person / an institution.
What is a debt?
The money you earn at your job before the tax man gets to it.
What is gross pay?
A plan for earning and spending over a period of time.
What is a budget?
The money you earn from your job after the tax man gets to it.
What is take home pay?
The maximum amount of credit a financial institution extends to a client on a credit card.
What is credit limit?
An amount of money that a government requires people to pay according to their income.
What are taxes?
A type of bank account that allows you to easily deposit and withdraw money for daily transactions
What is a Checking Account?
Name 2 ways to improve your financial literacy.
Start budgeting, read about finances, take a personal finance class, set financial goals, etc.
I have enough money to pay the balance of my credit card, but I just pay the minimum monthly payment. Is that the best financial decision? True or False
False
Paying the Minimum amount is not the best decision. A person is charged interest when their credit card balance is not a 0 by the end of the month.
The score given by a credit agency regarding your ability to pay off a debt.
What is a credit rating/score?
This is what a 401k is.
What is a type of retirement plan?
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.