Financial Literacy

What is Borrowed Money called? *

• Interest

• Loans

• Savings

• Investment

Putting Money Away for Later *

• Savings

• Net Pay

• Loan

• Interest

What you bring home after all your Deductions? *

• Gross Pay

• Savings

• Annual Pay

• Net Pay

What you make before deductions?

• Gross Pay

• Savings

• Earned Income

• Net Pay

Something you pay when you have debt *

• FICA

• Taxes

• Interest

• Social Security

What is emergency savings?

• Transferring money into your savings before you pay your bills

• Original amount of money saved or invested

• Cash set aside to cover the cost of unexpected events

• Maximizing your return by selling stocks at a higher price than what you paid for

What is investing?

• Possibility that an investment will fail to pay the expected return

• Money invested is usually used to pay for long-term goals

• Assets purchased with the goal of providing additional income from the asset itself but with the risk of loss

• The danger that money won’t be worth as much in the future as it is today.

Stocks are:

• A share of ownership in a company

• Organization pays interest to the lender

• Form of lending to a company or the government

• A specified time in the future when the principal amount of the bond is repaid to the bondholder

Investments are important to building:

• For emergencies

• For your future net worth

• A trade-off to higher returns is lower liquidity and higher risk

• Tax-advantaged investments

When does overdraft occur?

• When liquidity occurs

• When stocks are sold at a high price then it was bought for

• When your withdrawal from a bank account exceeds the available balance

• When you purchase an item on credit