Financial Literacy Vocabulary

Financial Literacy is about all of the following skills EXCEPT FOR:

• Knowing about money skills such as spending, earning, and saving

• Learning about banks, stocks, and investments

• Understanding credit, loans, and taxes

• Trading needs for items with no money involved

A Gift Economy is...

• How many goods and services you can exchange for money

• A "Perfect World" where no items are sold, only given freely without any thought of payback

• tasks or skills exchanged for money that benefit the purchaser

• Setting aside money for a short term goal such as a big purchase

Purchasing power is...

• How many goods and services you can exchange for money

• A "Perfect World" where no items are sold, only given freely without any thought of payback

• tasks or skills exchanged for money that benefit the purchaser

• Setting aside money for a short term goal such as a big purchase

Services are...

• How many goods and services you can exchange for money

• A "Perfect World" where no items are sold, only given freely without any thought of payback

• tasks or skills exchanged for money that benefit the purchaser

• Setting aside money for a short term goal such as a big purchase

Savings are...

• How many goods and services you can exchange for money

• A "Perfect World" where no items are sold, only given freely without any thought of payback

• tasks or skills exchanged for money that benefit the purchaser

• Setting aside money for a short term goal such as a big purchase

Income involves...

• the money a person earns by exchanging goods and services

• Money set aside from savings to accomplish long term goals such as future income, benefits or profits

• trading goods and services for needed items without using money

• Money set aside to accomplish short term goals such as big purchases

Money is all of the following EXCEPT

• Durable (It must be made to last)

• Easily Divided (Able to make "change" or smaller amounts)

• Portable (Can move it easily)

• Unlimited in Quantity (The government can make as much as it wants)

Investments are...

• Set aside for future benefits, income or profit and used for Long Term Goals

• how much money an individual earns

• must be tangible (able to be touched)

• traded for needed items

Bartering is...

• the money a person earns by exchanging goods and services

• Money set aside from savings to accomplish long term goals such as future income, benefits or profits

• trading goods and services for needed items without using money

• Money set aside to accomplish short term goals such as big purchases

Goods are...

• Banks, stocks, and investments

• Trading needed items without involving money

• items or objects that are exchanged for money (must be tangible)

• tasks and skills that are exchanged for money