4th Grade Financial Literacy Review

Front

What is a fixed expense?

Back

A fixed expense is a cost that does not change from month to month, such as a gym membership.

Front

What are financial institutions?

Back

Financial institutions are places like banks, credit unions, and savings and loans where you can manage your money.

Front

How do you calculate profit?

Back

Profit is calculated by subtracting the total costs from the total revenue. For example, if you buy something for $12 and sell it for $38, your profit is $38 - $12 = $26.

Front

What is an expense?

Back

An expense is something that you pay for, such as bills or groceries.

Front

What is a benefit of saving money in a basic savings account?

Back

A benefit is that the money is insured and safe, you might earn a small amount of interest, and you can withdraw the money at any time.

Front

What is a variable expense?

Back

A variable expense is a cost that can change from month to month, like groceries or entertainment.

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What is income?

Back

Income is the money you earn from work or investments.

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What does it mean to budget?

Back

Budgeting means planning how to spend your money wisely.

Front

What is interest?

Back

Interest is the money paid to you by a bank for keeping your money in a savings account.

Front

What is a profit margin?

Back

Profit margin is the difference between the cost of a product and its selling price, expressed as a percentage.