Financial Literacy

Front

What is saving?

Back

Accumulation of excess funds by intentionally spending less than you make

Front

Emergency savings

Back

Cash set aside to cover the cost of unexpected events

Front

When is an item considered an asset?

Back

When it is fully paid off and can be sold for cash

Front

How much money should you save for emergencies?

Back

6 months worth of expenses

Front

How does time effect money?

Back

The longer you save your money the more you will make

Front

What is investing?

Back

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

Front

Stocks are:

Back

A share of ownership in a company

Front

What is a bond?

Back

A Form of lending to a company or the government

Front

Investments are important to building:

Back

For your future net worth

Front

Money invested is usually used to pay to:

• Achieve long-term goals
• For emergencies
• To purchase expensive items
• To pay off loans

Back

Achieve long-term goals