Personal Financial Literacy enVision Topic 16

Front

What is profit?

Back

Profit is the amount of money a business makes after subtracting all costs. For example, if a doll sells for $15 and costs $6 to make, the profit is $15 - $6 = $9.

Front

What is interest in banking?

Back

Interest is the money earned on deposits in a bank. When you put money in a savings account, the bank pays you interest as a reward for keeping your money there.

Front

How do you calculate total charges on a credit card?

Back

To find the total charges, add all the individual charges together. For example, if you charged $3.45, $4.67, and $9.85, the total is $3.45 + $4.67 + $9.85 = $17.97.

Front

What is a variable expense?

Back

A variable expense is a cost that can change from month to month, such as money spent on entertainment or dining out. For example, going to a movie is a variable expense.

Front

What is a primary service of a bank?

Back

A primary service of a bank is to offer checking and savings accounts to customers, allowing them to manage their money safely.

Front

What is a fixed expense?

Back

A fixed expense is a cost that does not change, such as rent or a car payment, which remains the same each month.

Front

What does it mean to budget?

Back

Budgeting means planning how to spend your money wisely by tracking income and expenses to ensure you do not overspend.

Front

What is a savings account?

Back

A savings account is a bank account that earns interest on the money deposited, allowing you to save for future needs.

Front

What is a credit card?

Back

A credit card is a plastic card that allows you to borrow money from a bank to make purchases, which you must pay back later.

Front

What is the difference between needs and wants?

Back

Needs are essential items required for survival, like food and shelter, while wants are non-essential items that enhance life, like toys or luxury items.