Personal Financial Literacy Flashcard

Front

What is profit?

Back

Profit is the amount of money earned after subtracting expenses from total earnings.

Front

What does a bank do?

Back

A bank keeps your money safe, allows you to borrow money, and lends you money, but it does not let you take out more money than you have in your account.

Front

What is a variable expense?

Back

A variable expense is a cost that can change from month to month, such as gas or groceries.

Front

What is a fixed expense?

Back

A fixed expense is a cost that remains the same each month, such as rent or a car payment.

Front

How do you calculate the total amount in a savings account after a deposit and interest?

Back

Add the initial amount, the deposit, and the interest earned.

Front

What are examples of variable expenses?

Back

Gasoline and groceries are examples of variable expenses.

Front

What is a savings account?

Back

A savings account is a bank account that earns interest on the money deposited.

Front

What is interest?

Back

Interest is the money earned on a savings account or the cost of borrowing money.

Front

What is the difference between income and expenses?

Back

Income is the money earned, while expenses are the costs incurred.

Front

What is fixed income?

Back

Fixed income is a consistent amount of money received regularly, such as a salary.