Unit 1 Financial Literacy Flashcard

Front

What is a debit card?

Back

A debit card is a payment card that allows you to make purchases by withdrawing money directly from your bank account.

Front

How does a debit card differ from a credit card?

Back

A debit card withdraws money directly from your bank account, while a credit card allows you to borrow money up to a certain limit to make purchases.

Front

What is a check register?

Back

A check register is a record of all transactions in a checking account, including deposits, withdrawals, and the current balance.

Front

How do you calculate the balance in a checking account?

Back

To calculate the balance, add all deposits and subtract all withdrawals from the initial balance.

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What is the importance of financial literacy?

Back

Financial literacy helps individuals make informed decisions about managing money, budgeting, saving, and investing.

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What is an associate's degree?

Back

An associate's degree is a two-year degree awarded by colleges and universities, often leading to higher earning potential compared to just a high school diploma.

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How much more can a person with an associate's degree earn compared to someone with only a high school diploma?

Back

On average, a person with an associate's degree can earn significantly more over their career than someone with just a high school diploma.

Front

What is the average annual salary?

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The average annual salary is the total earnings of a group of workers divided by the number of workers, giving a general idea of what people earn in a specific job.

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What factors can affect a person's salary?

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Factors include education level, job experience, industry, location, and demand for specific skills.

Front

What is the purpose of budgeting?

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Budgeting helps individuals plan their spending and saving, ensuring they can meet their financial goals and obligations.