Personal Financial Literacy

Front

What is Personal Financial Literacy?

Back

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

Front

What is a 'need' in budgeting?

Back

A 'need' is an essential expense that must be paid for survival, such as housing, food, and healthcare.

Front

What is a 'want' in budgeting?

Back

A 'want' is a non-essential expense that enhances quality of life, such as entertainment, luxury items, and dining out.

Front

What is gross income?

Back

Gross income is the total amount of money earned before any taxes or deductions are taken out.

Front

What is net income?

Back

Net income is the amount of money left after all taxes and deductions have been taken from gross income.

Front

What is property tax?

Back

Property tax is a tax paid by property owners based on the value of their property.

Front

How do you calculate savings over time?

Back

To calculate savings over time, multiply the amount saved each week by the number of weeks.

Front

If Pam saves $5 each week, how much will she have after 7 weeks?

Back

Pam will have $35 after saving $5 each week for 7 weeks.

Front

What is the purpose of a budget?

Back

A budget helps individuals plan their spending and saving to ensure they can meet their financial goals.

Front

What is the difference between fixed and variable expenses?

Back

Fixed expenses are costs that do not change month to month, like rent, while variable expenses can fluctuate, like groceries.