Financial Literacy Vocabulary Flashcard

Front

What is a credit card?

Back

An identification card issued by a bank that allows a user to buy items and services immediately and pay the cost at a later time. The bank might charge interest in exchange for the use of the money.

Front

What is net income?

Back

The income AFTER taxes are taken out.

Front

What is interest?

Back

Money paid for borrowing money from a bank.

Front

Can you use an ATM to withdraw cash from a checking account?

Back

True

Front

What is savings?

Back

To set money aside to use for later.

Front

What is a debit card?

Back

A card issued by a bank that allows a user to access their checking account to make purchases or withdraw cash.

Front

What is gross income?

Back

The total income before taxes and other deductions are taken out.

Front

What does it mean to budget?

Back

To plan how to spend your money wisely.

Front

What is a bank?

Back

A financial institution that accepts deposits from the public and provides loans.

Front

What is an expense?

Back

Money that is spent on goods and services.