Financial Literacy 1
A financial institution that accepts deposits from the public.
A Bank
Financial Literacy
An objective that a person sets affects how they save and spend money. Objectives can be short-term (e.g., buying a computer) or long-term (e.g., saving up for college/university).
Financial Goal
Lauren pays for her book at the bookstore. She uses a card that can only be used at a specific store.
A gift card
A document that orders a financial institution to pay a specific amount from the issuer's account to the person or organization named.
A check
A thing that is borrowed, especially a sum of money that is expected to be paid back in interest.
An agreement between a buyer and seller to exchange goods or services (including for money).
What does FICA stand for? How much does FICA take from my paycheck?
FICA Federal Insurance Contributions Act
FICA takes 15.3%
Someone who buys a product or service
What is a customer
1) Purchasing a new backpack for school (expense or income)
2) Getting a weekly $35 allowance for doing chores around the house (expense or income)
3) Buying Regino's pizza for $5.00 for lunch (expense or income)
1) expense
2) income
3) expense
A card issued by the bank that allows the holder to transfer money electronically to another account when making a purchase.
Debit Card
Name 2 ways to improve your financial literacy.
Start budgeting, read about finances, take a personal finance class, set financial goals
Aran really wants the new PS5, which costs $500. Aran has $200.00 in his Bank of Walsh. However, he just received a credit card with a $1000 limit. Should Aran use his credit card to buy a PS5? Why or why not?
NO! Aran should not use his credit card because he does not have enough money in his checking account to pay off his credit card bill. He will end up paying interest on the outstanding balance owing on his credit card.
What can be done with your money? (hint - there are 4 ways)
Spend, Save, Invest, Donate
What do you call a budget where your expenses are not more than your income and it allows you to save money for future use?
A realistic budget
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 at 0 by the end of the month.
Money being put into an bank account
What is a Deposit
Name 3 banking institutions in your neighborhood
Answers will vary. Chase, Wintrust, Byline, 5/3 Bank, First Midwest, US Bank
Bank account by which a person makes deposits and accumulates interest with a goal
Savings account
1) Money that we receive in exchange for work or investments.
2) Things that one spends money on.
3) An estimate or plan to manage income and expenses over a set period.
1) Income
2) Expenses
3) Budget
Being able to borrow tomorrow's money to pay for something today
Credit
DAILY DOUBLE
Suppose you have $100 dollars in a savings account earning 2% interest a year. After 5 years, how much money would you have?
A. More than $102
B. Exactly $102
C. Less than $102
A. More than $102
$100x.02x5=$10
What should your credit card balance be by the end of the month?
It should be $0.00 by the end of the month.
What do you need to consider when making a budget? (hint - there are 3 points)
1) How much we earn each week or month (income)
2) What are our expenses are
3) What we need and what we want
Name the different forms of taxes collected in the United States. (hint - there are 3 different types).
1) Income tax
2) Sales tax
3) Property tax