1) Personal Financial Literacy STAAR 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

What is the difference between needs and wants?

Back

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

Front

What is saving?

Back

Saving is the process of setting aside a portion of income for future use, often for emergencies or specific goals.

Front

What is interest?

Back

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

Front

What is a credit score?

Back

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

Front

What is the purpose of insurance?

Back

Insurance is a financial product that provides protection against financial loss or risk, helping individuals manage unexpected events.

Front

What is a loan?

Back

A loan is a sum of money borrowed from a lender that must be repaid with interest over a specified period.

Front

What is the difference between a debit card and a credit card?

Back

A debit card allows users to spend money directly from their bank account, while a credit card allows users to borrow money up to a certain limit to make purchases.

Front

What is an emergency fund?

Back

An emergency fund is a savings account set aside for unexpected expenses or financial emergencies, typically covering 3-6 months of living expenses.