Financial Literacy Vocabulary

Front

What is a loan?

Back

A loan is when money is borrowed and paid back at a later time with interest.

Front

What is a variable expense?

Back

A variable expense is a cost that can change from month to month, such as a trip to the zoo.

Front

What is a fixed expense?

Back

A fixed expense is a cost that does not change, such as a monthly Netflix bill or health insurance.

Front

Give an example of a fixed expense.

Back

Examples of fixed expenses include rent, mortgage payments, and insurance premiums.

Front

Give an example of a variable expense.

Back

Examples of variable expenses include groceries, entertainment, and clothing.

Front

What is the difference between fixed and variable expenses?

Back

Fixed expenses remain the same each month, while variable expenses can fluctuate.

Front

What is health insurance?

Back

Health insurance is a fixed expense that helps cover medical costs.

Front

What is a deposit?

Back

A deposit is money placed into a bank account.

Front

What does it mean to save money?

Back

To save money means to set aside a portion of income for future use.

Front

What is interest?

Back

Interest is the cost of borrowing money, usually expressed as a percentage.