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?
Money you receive for doing work or from investments.
What is 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 with interest.
A Loan
The money charged for the privilege of borrowing money.
What is interest?
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?
An occupation undertaken taken for a significant time and with opportunity to progress.
What is a career?
A fixed amount someone earns in a year for their job--regardless of the number of hours worked.
What is an annual salary?
A bank card that automatically deducts the amount of a purchase from your checking account.
What is a debit card?
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.
The money you earn at your job before taxes are deducted.
What is gross income?
A plan for earning and spending over a period of time.
What is a budget?
A card used to make purchases with the agreement that the cardholder will pay back the card issuer for the purchases and any fees and interest
What is a credit card?
Money owed from one person to another person or company
What is a debt?
A loan that is repaid with a specific number of fixed payments (like a car or student loan)
What is an installment loan?
The money you earn from your job after the taxes are deducted
What is net income?
A type of bank account that allows you to easily deposit and withdraw money for daily transactions
A Checking Account
The initial amount of money borrowed on a loan.
What is the principal?
The maximum amount you can spend 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?
A safety net that protects you from unexpected accidents or problems in exchange for a payment.
What is insurance?