Financial Literacy Terms

This is a plastic card form of payment in which the bank loans you money to purchase an item but charges you interest.

• Debit Card

• Mortgage

• Credit Card

• Credit Loan

A credit card company usually has a grace period for purchases. A grace period is...

• the time period after you make a purchase until the time the interest starts to get charged.
• the time period where interest builds on the amount you purchased.

Overspending and accumulating too much debt can ruin your credit score

• True
• False

The lowest amount of money shown on your credit card bill that must be paid every month is called the: 

• late fee
• minimum payment
• credit limit
• previous balance

Amanda has to pay taxes on her annual salary and investments. Which type of tax is Kimberly paying? 

• Sales Tax
• Property Tax
• Payroll Tac
• Income Tax

Katie goes to the bank. She takes money out of her account. Katie has made a

• Deposit

• Withdrawal

Banks often have a limit to the number of times you can get money out of your account. If you go over this limit, you are usually charged this:

• A late fee

• A service charge

• An annual fee

• A credit score

Often credit cards charge you a fee just to have the credit card. This is called:

• A credit charge

• A service charge

• A privilege card fee

• An annual fee

This is a plan of how you are going to organize and control your spending and saving.

• A budget

• A savings account

• A personal loan plan

• A minimum payment plan

ATMs are used to withdraw money out of your bank account or credit card. ATM stands for:

• Annual Ticket Machine

• Automated Tech Machine

• Automated Teller Machine

• A Teller Machine