7th Personal Financial Literacy Unit Review

Front

What is personal financial literacy?

Back

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

Front

What is a budget?

Back

A budget is a plan that outlines expected income and expenses over a specific period, helping individuals manage their finances.

Front

How do you calculate net worth?

Back

Net worth is calculated by subtracting total liabilities (debts) from total assets (what you own).

Front

What is simple interest?

Back

Simple interest is calculated using the formula I = prt, where I is the interest, p is the principal amount, r is the rate of interest, and t is the time in years.

Front

What is the formula for calculating percentage?

Back

Percentage is calculated using the formula: (part/whole) x 100.

Front

How do you determine the amount of income tax owed?

Back

Income tax owed can be determined by multiplying the taxable income by the tax rate.

Front

What is the importance of saving money?

Back

Saving money is important for financial security, emergencies, and future investments.

Front

What is an expense?

Back

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

Front

What is the difference between fixed and variable expenses?

Back

Fixed expenses remain constant each month (e.g., rent), while variable expenses can fluctuate (e.g., groceries).

Front

What is a financial goal?

Back

A financial goal is a specific objective related to money management, such as saving for a car or paying off debt.