5th and 6th grade Financial Literacy Combined Test

Front

What is gross income?

Back

Gross income is the total amount an employee earns before any deductions or taxes are applied.

Front

What is net income?

Back

Net income is the amount an employee is paid after all deductions and taxes have been applied.

Front

What is a debit card?

Back

A debit card is a payment card that withdraws money directly from a bank account when used for purchases.

Front

What is a credit card?

Back

A credit card is a payment card that allows the holder to borrow funds from a pre-approved limit to make purchases.

Front

What is the difference between debit and credit cards?

Back

Debit cards withdraw money directly from a bank account, while credit cards allow borrowing money up to a credit limit.

Front

What is a budget?

Back

A budget is a written plan that outlines how money should be allocated and spent.

Front

What is a student loan?

Back

A student loan is money borrowed to pay for education, which must be repaid with interest after graduation.

Front

What is a grant?

Back

A grant is a sum of money given by an organization or government for a specific purpose, often not requiring repayment.

Front

What is interest?

Back

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

Front

What is a balanced budget?

Back

A balanced budget occurs when total income equals total expenses, with no deficit.