Financial Literacy: Terms and Definitions

How can you know what your net worth is?

• By looking at your paycheck: your net worth is your salary.

• By adding the value of all your assets and subtracting your liabilities.

• By adding the value of all your liabilities and subtracting your assets.

Tags

CCSS.6.NS.C.5

What is a mortgage?

• Money borrowed from a bank to buy a house

• Money borrowed from a bank to pay for college

• A thing that people collect as an investment

How often should we assess our short- and medium-term goals?

• Every 3-6 days

• Every week

• Every 3-6 months

What could be an example of a short-term goal?

• Saving for a house

• Paying off a credit card bill

• Traveling in retirement

What could be an example of a medium-term goal?

• Paying off a credit card bill.

• Saving for a house.

• Traveling in retirement.

What could be an example of a long-term goal?

• Saving for Christmas gifts.

• Paying off a credit card bill.

• Traveling in retirement.

What information does your credit report contain?

• Your short-, medium- , and long-term goals.

• The status of your credit accounts and your bill paying history

• The value of the property and money that you have

What can be an example of an asset?

• Our savings

• Our rent

• Our utility bill

What can be an example of a liability?

• A mortgage

• A car that we own

• Savings

What is real estate?

• A building or land that you own

• The value of the property and money that you have

• Money borrowed from a bank to buy a house