Financial Literacy Flashcard

Front

What does 'biweekly' mean in financial terms?

Back

It refers to a payment every two weeks.

Front

What is the term for the profit or loss on an investment over a one-year period?

Back

Annual return.

Front

What is the primary function of a credit card?

Back

To facilitate cashless transactions and build credit history.

Front

What does 'federal minimum wage' mean?

Back

The lowest national wage as established by law.

Front

What is the purpose of an emergency fund?

Back

To cover unexpected expenses and protect against debt accumulation.

Front

What is a budget?

Back

A plan that outlines expected income and expenses over a specific period.

Front

What is interest?

Back

The cost of borrowing money, usually expressed as a percentage of the amount borrowed.

Front

What is a savings account?

Back

A bank account that earns interest on deposits and is used for saving money.

Front

What is the difference between gross pay and net pay?

Back

Gross pay is the total earnings before deductions; net pay is the amount received after deductions.

Front

What is a loan?

Back

A sum of money borrowed that is expected to be paid back with interest.