Financial Literacy

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What is Financial Literacy?

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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 difference between needs and wants?

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Needs are essential items required for survival (like food and shelter), while wants are non-essential items that enhance quality of life (like luxury items).

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What is saving?

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Saving is the process of setting aside a portion of income for future use, often in a savings account.

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What is interest?

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Interest is the cost of borrowing money or the earnings from saving or investing money, usually expressed as a percentage.

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What is a bank?

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A bank is a financial institution that accepts deposits, offers loans, and provides various financial services.

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What is a loan?

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A loan is a sum of money borrowed from a lender that is expected to be paid back with interest.

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What is a credit score?

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A credit score is a numerical representation of a person's creditworthiness, based on their credit history.

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What is an expense?

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An expense is any cost incurred in the process of earning income or maintaining a lifestyle.

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What is a financial goal?

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A financial goal is a specific objective related to money management, such as saving for a car or planning for retirement.