Financial Literacy Vocabulary

What is a Credit Card?

• A type of debit card that requires immediate payment.

• An identification card issued by a bank that allows users to buy items and pay later.

• A card that can only be used for online purchases.

• A loyalty card that offers discounts at specific stores.

What is an Expense?

• Money spent on goods and services.

• A type of investment.

• A form of income.

• A financial liability.

What is a Debt Card?

• An identification card issued by a bank that allows users to immediately use money from a checking account.

• A card that allows users to borrow money from a bank for purchases.

• A prepaid card that can be used for online shopping.

• A credit card that offers rewards for spending.

What is a Loan?

• Money that is borrowed and must be paid back with interest.

• A type of investment that generates profit.

• A gift of money that does not need to be repaid.

• A financial product that guarantees returns.

What is a Savings Account?

• A type of investment account that allows for trading stocks.

• A bank account that earns interest on the money deposited, used for saving money.

• A checking account that offers no interest on deposits.

• A loan account that requires monthly payments.

What is a Checking Account?

• A type of savings account with high interest rates.

• A bank account that allows for deposits and withdrawals, typically used for everyday transactions.

• An investment account for buying stocks and bonds.

• A loan account for borrowing money from the bank.

What is an Asset?

• Anything of value or a resource owned by an individual or entity.

• A liability that must be paid off.

• A type of investment that guarantees returns.

• A financial obligation owed to creditors.

What is Income Tax?

• A tax that governments impose on income generated by businesses and individuals.

• A fee charged for the use of public services.

• A tax on the value of property owned by an individual.

• A tax levied on goods and services sold.

What is Property Tax?

• A fee paid for the maintenance of public parks.

• A portion of the value of items, usually related to real estate, that is paid to the government.

• A tax on income earned by individuals and businesses.

• A charge for the use of public transportation services.

What is Gross Income?

• Your total income before taxes are taken out.

• Your income after all deductions and taxes.

• Your income from investments only.

• Your total income from all sources, including gifts.