Financial Literacy 5th Grade

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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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Why is saving money important?

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Saving money is important because it helps individuals prepare for emergencies, achieve financial goals, and secure their future.

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What is an expense?

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An expense is any cost incurred in the process of earning income or maintaining a lifestyle, such as bills, groceries, and entertainment.

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What does it mean to invest?

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To invest means to allocate money into assets or ventures with the expectation of generating a profit or income over time.

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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 bank?

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A bank is a financial institution that accepts deposits, offers loans, and provides various financial services to individuals and businesses.

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What is a savings account?

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A savings account is a type of bank account that allows individuals to deposit money, earn interest, and withdraw funds while keeping their savings safe.

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What is a loan?

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A loan is a sum of money borrowed from a lender that must be repaid with interest over a specified period.

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What is a credit card?

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A credit card is a payment card that allows individuals to borrow funds from a pre-approved limit to make purchases, which must be paid back later.