STAAR Review Financial Literacy

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What is a savings account?

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A savings account is a bank account that earns interest on the money deposited and is used for saving money for future needs, such as college.

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What is a credit score?

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

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What is a loan?

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A loan is a sum of money borrowed from a lender that must be paid back with interest over time.

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What is a scholarship?

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A scholarship is a form of financial aid awarded to students based on academic or other achievements that does not need to be repaid.

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What is a grant?

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A grant is a financial aid award given by a non-profit organization or government that does not need to be repaid.

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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 a credit card?

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A credit card is a payment card that allows the holder to borrow funds from a pre-approved limit to pay for goods and services.

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What is an overdraft fee?

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An overdraft fee is a charge that a bank imposes when a customer spends more money than is available in their account.

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What is financial literacy?

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Financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing.

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What is a checking account?

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A checking account is a bank account that allows for deposits and withdrawals, typically used for everyday transactions.