Personal Financial Literacy

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What is Personal Financial Literacy?

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

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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, helping individuals manage their finances.

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What is the importance of saving for college?

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Saving for college helps reduce the amount of student loans needed, making it easier to manage future debt and financial responsibilities.

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What is a credit card?

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A credit card is a payment card that allows the holder to borrow funds from a financial institution to make purchases, with the agreement to pay back the borrowed amount plus interest.

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What is interest?

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Interest is the cost of borrowing money, usually expressed as a percentage of the amount borrowed, which must be paid back in addition to the principal.

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What is a scholarship?

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A scholarship is a financial award given to a student to help pay for their education, often based on academic or other achievements.

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What is a grant?

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A grant is a sum of money given by an organization, often a government or educational institution, to help fund a specific purpose, such as education.

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What does it mean to be financially responsible?

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Being financially responsible means making informed decisions about spending, saving, and investing to ensure long-term financial stability.

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What is the difference between a debit card and a credit card?

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A debit card withdraws money directly from a bank account, while a credit card allows borrowing money up to a certain limit to be paid back later.

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What is the consequence of not paying off a credit card balance in full?

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If a credit card balance is not paid off in full, the cardholder may incur interest charges on the remaining balance.