Financial Literacy Review

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What is Financial Literacy?

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Financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing.

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What is a Budget?

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A budget is a plan that outlines expected income and expenses over a specific period, helping individuals manage their money.

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What does Saving mean?

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Saving is the process of setting aside a portion of income for future use, often in a savings account.

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What is an Expense?

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An expense is any cost incurred in the process of earning income, such as bills, groceries, and rent.

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What is Income?

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Income is the money received, typically on a regular basis, for work or through investments.

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What is a Bank?

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A bank is a financial institution that accepts deposits from the public, provides loans, and offers other financial services.

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What is Interest?

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Interest is the cost of borrowing money or the earnings from saving or investing money, usually expressed as a percentage.

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What is a Savings Account?

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A savings account is a bank account that earns interest on the money deposited and is used for saving.

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What is a Loan?

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A loan is a sum of money borrowed that is expected to be paid back with interest.

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What is a Credit Card?

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A credit card is a plastic card that allows the holder to borrow funds to make purchases, with the agreement to pay back the borrowed amount plus interest.