Financial Literacy Flashcard

Front

What is a budget?

Back

A plan for making and spending money

Front

What does the term "expense" refer to?

Back

Money spent on goods and services

Front

What does "interest" refer to in financial terms?

Back

The fee charged for borrowing money

Front

Why is it important to use credit responsibly?

Back

To avoid financial problems

Front

How can making a personal budget lead to financial responsibility? Options: By increasing your expenses, By tracking your income and spending, By borrowing more money, By ignoring your savings

Back

By tracking your income and spending

Front

What is the goal of budgeting according to the text?

Back

To keep a positive balance

Front

What should you do if you have a deficit at the end of the two-week period?

Back

Look for ways to cut spending or earn more money

Front

What is credit?

Back

Money borrowed to pay for goods or services

Front

Who is a lender?

Back

A person or business that loans money for a fee.

Front

What is interest?

Back

The cost charged for borrowing money