Flashcard on Borrowing Money

Front

What is borrowing money?

Back

Borrowing money means taking money from someone with the promise to pay it back later.

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What is a loan?

Back

A loan is money that is borrowed and must be paid back with interest.

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What is interest?

Back

Interest is the extra money you pay back when you borrow money.

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What is a principal?

Back

The principal is the original amount of money borrowed.

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What is a repayment plan?

Back

A repayment plan is an agreement on how to pay back borrowed money.

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What is a credit card?

Back

A credit card allows you to borrow money to buy things now and pay for them later.

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What is a debit card?

Back

A debit card takes money directly from your bank account when you buy something.

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What does it mean to repay a loan?

Back

Repaying a loan means giving back the money you borrowed, usually with interest.

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What is a bank?

Back

A bank is a place where you can borrow money or keep your money safe.

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What is a family loan?

Back

A family loan is money borrowed from a family member, often with flexible repayment terms.