Financial Literacy Review

Financial Literacy Review

Sales Tax​

​1. Use a percent proportion to calculate how much the sales tax is

2. Add it to the cost of what you are buying ​

​How do I calculate it?

Tax on things you buy or services ​

​What is it?

​Income Tax

Be careful about what time frame the question is asking about!​

1. Use a percent proportion to find out how much the tax is

2. Subt​ract it from how much you make

​How do I calculate it?

A tax taken out of money that you earn​

​What is it?

Simple Interest

I = prt

To find total, add interest to the principal ​

​How do I calculate it?

Interest is money​ you earn or pay for lending or borrowing money

Simple Interest is earned on the principal (original) amount ​

​What is it?

Compound Interest

A = p(1+r)^t​

This gives you the TOTAL

To find interest, subtract total minus principal ​

​How do I calculate it?

Interest earned on principal and previous interest ​

​What is it?

Budget​

Some text here about the topic of discussion

To calculate what percent of your income different expenses take up, use the percent proportion ​

​How do I calculate it?

A way of organizing income and expenses ​in order to make good financial decisions. Usually made monthly

​What is it?

Net Worth

Some text here about the topic of discussion

Add all assets

A​dd all liabilities

Subtract Assets minus Liabilities ​

If the Liabilities are greater, your answer will be negative! ​

​How do I calculate it?

The value of what you own (assets) minus the value of what you owe (liabiities)

​What is it?

Fill in the Blanks

Monetary Incentives

If percentage off, use percent set up and subtract from total

If amount off, subtract amount off from total​

Make sure you are comparing the same time frame! ​

​How do I calculate them?

Sale: the cost of the item is reduced in store for a period of time

Rebate: ​The customer pays full price at the store, but submits a rebate request to the company

Coupon: a voucher for ​a discounted price

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​What are they?

Multiple Choice

You have two coupons for a video game that costs $40 but you can only use one. The first one is for 20% off. The second one is for $10 off. Which one is the better deal?

• 20% off

• $10 off