Financial Literacy

Front

What is an investment?

Back

Anything that is purchased with the hope that it will generate income or be more valuable at a future date.

Front

What is net pay?

Back

The amount left over from your paycheck after taxes and deductions.

Front

What is an interest rate?

Back

The percentage at which interest is charged or paid.

Front

Does money grow better the longer it is invested?

Back

True

Front

Are most millionaires college graduates?

Back

True

Front

What is a budget?

Back

A plan that outlines expected income and expenses over a specific period.

Front

What is the difference between gross pay and net pay?

Back

Gross pay is the total earnings before deductions, while net pay is what you take home after deductions.

Front

What is a loan?

Back

An amount of money borrowed that is expected to be paid back with interest.

Front

What is the purpose of a savings account?

Back

To save money while earning interest on the balance.

Front

What is compound interest?

Back

Interest calculated on the initial principal and also on the accumulated interest from previous periods.