Financial Literacy 5th Grade

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What is financial literacy?

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Financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing.

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Why is budgeting important?

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Budgeting helps individuals plan their spending, save money, and ensure they can meet their financial obligations.

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What is a budget?

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

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What does saving mean?

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Saving is the process of setting aside a portion of income for future use.

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What is an expense?

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An expense is any cost incurred in the process of purchasing goods or services.

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What is income?

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Income is the money received, typically on a regular basis, for work or through investments.

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What is a bank?

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

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What is interest?

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Interest is the cost of borrowing money or the earnings from saving or investing money.

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What is a savings account?

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A savings account is a bank account that earns interest on the money deposited.

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What is a loan?

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A loan is a sum of money borrowed that is expected to be paid back with interest.