Financial Literacy Vocabulary

Front

What is a bank?

Back

A bank is a financial institution that accepts deposits from customers, provides loans, and offers various financial services.

Front

What is a credit union?

Back

A credit union is a member-owned financial cooperative that provides similar services as a bank, often with lower fees and better interest rates.

Front

What is a fixed expense?

Back

A fixed expense is a cost that does not change from month to month, such as rent or a subscription.

Front

What is a variable expense?

Back

A variable expense is a cost that can change from month to month, such as groceries or entertainment.

Front

What does it mean to withdraw money?

Back

To withdraw money means to take money out of a bank account.

Front

What is income?

Back

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

Front

What is profit?

Back

Profit is the financial gain made after all expenses are subtracted from income.

Front

What is a loan?

Back

A loan is money that is borrowed and is expected to be paid back with interest.

Front

What is a financial institution?

Back

A financial institution is an organization that provides financial services, such as banks, credit unions, and insurance companies.

Front

What is the purpose of a savings account?

Back

A savings account is used to save money while earning interest on the balance.