STAAR TEKS 6.14 (Financial Literacy)

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What is a credit card?

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A credit card is a payment card that allows the cardholder to borrow funds from a pre-approved limit to pay for goods and services, with the obligation to pay back the borrowed amount plus interest if not paid in full by the due date.

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What is a debit card?

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A debit card is a payment card that deducts money directly from a consumer's checking account to pay for a purchase.

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What is interest in terms of loans?

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Interest is the cost of borrowing money, usually expressed as a percentage of the amount borrowed, which must be paid back along with the principal.

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What is a student loan?

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A student loan is a type of loan specifically for students to help pay for education expenses, which must be repaid with interest after graduation.

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What is a credit report?

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A credit report is a detailed report of an individual's credit history, including information about credit accounts, payment history, and outstanding debts.

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What does a high credit score indicate?

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A high credit score indicates that a person is likely to repay borrowed money on time, making them a lower risk for lenders.

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What is the difference between a scholarship and a student loan?

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A scholarship is a financial award that does not need to be repaid, while a student loan is borrowed money that must be repaid with interest.

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What is the purpose of a budget?

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

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What is the median salary?

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The median salary is the middle value of a list of salaries, meaning half earn more and half earn less.

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What is a loan?

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