Financial Literacy Terms

A need is something that is needed to survive. A want is something that an individual desires, but would be able to live without.

• True

• False

Tags

CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

A budget is a spending plan based on income and expenses.

• True

• False

Income is the money you earn or receive. Expenses is what you spend your money on.

• True

• False

Gross pay is the amount of earnings you receive before taxes and benefits are deducted.

• True

• False

Net pay is higher than gross pay.

• True

• False

Credit

• Credit is the ability of an individual or organization to obtain goods or services before payment, based on an agreement to pay later.

• Credit is the ability of an individual or organization to obtain goods or services for free.

Tags

CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

The difference between a credit card and debit card.

• When you use a debit card, the funds for the amount of your purchase are taken from your checking account in almost real time. When you use a credit card, the amount will be charged to your line of credit, meaning you will pay the bill at a later date, which also gives you more time to pay.

• When you use a credit card, the funds for the amount of your purchase are taken from your checking account in almost real time. When you use a debit card, the amount will be charged to your line of credit, meaning you will pay the bill at a later date, which also gives you more time to pay.

The amount of money borrowed on a loan is

• principal

• interest

Tags

CCSS.7.RP.A.3

The amount a lender charges a borrower and is a percentage of the principal—the amount loaned

• principal

• interest rate

• APR

Tags

CCSS.7.RP.A.3

The yearly rate of interest that an individual must pay on a loan.

• principal

• interest rate

• APR

Tags

CCSS.7.RP.A.3