Financial Literacy 1
Things that would be nice to have, but you can live without
What are wants?
The knowledge and application of various financial skills
What is financial literacy
What is the first rule of savings and investing?
Pay yourself first.
Things you spend money on
What are expenses?
The money you earn from your job after the taxes are deducted
What is net income
A bank account that lets you write checks, pay bills and do other personal money tasks
What is a checking account?
A bank account that pays you interest on the money you put into it
What is a savings account?
A card that lets you pay for things electronically, directly from your personal bank account
What is a debit card?
Financial institution that holds cash, lends money and provides other money services
What is a bank?
A plan for earning and spending over a period of time.
What is a budget
A thing that is borrowed, especially a sum of money that is expected to be paid back with interest
What is a loan.
Name 2 ways to improve your financial literacy?
Start budgeting, set financial goals, keeping record/track of purchases.
A portion of money paid to the government out of your paycheck to help pay for things like schools, hospitals, roads, and other services that benefit the country?
What is income tax?
What is a career
Using tablet or smartphone to do your banking
What is mobile banking
A fee someone pays when paying back borrowed money
What is interest?
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 score given by a credit agency regarding your ability to pay off a debt.
What is a credit score.
A list from a bank of all the transactions you made in a month
What is an account/bank statement?
The money you earn from your job before the taxes are deducted
What is gross pay
I have enough money to pay the balance on my credit card, but I just pay the minimum monthly payment. Is that the best financial decision?
What is no. Explain
The maximum amount of credit a financial institution extends to a client on a credit card?
What is a credit limit.
What is a name for a retirement account?
What is a pension, 401k, IRA
A safety net that protects you from unexpected accidents or problems in exchange for a payment.
What is insurance.
Dealing with your needs first, then your wants
What is good money management?