Financial Literacy Review

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What is a Fixed Expense?

Back

A fixed expense is a cost that does not change from month to month, such as a gym membership.

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What is a Variable Expense?

Back

A variable expense is a cost that can change each month, like groceries or entertainment.

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What is profit?

Back

Profit is the money you have after you have paid all your expenses.

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What is Income?

Back

Income is the money that you receive for a job or services.

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What type of institution is most likely to lend money for a car?

Back

A bank is most likely to lend money for a car.

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What is a Savings Account?

Back

A savings account is a bank account that earns interest on the money deposited.

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What is Interest?

Back

Interest is the money paid to you by the bank for keeping your money in a savings account.

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What does it mean to Borrow Money?

Back

To borrow money means to take money from someone with the agreement to pay it back later.

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What is a Budget?

Back

A budget is a plan that outlines how much money you will earn and spend.

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What are Business Expenses?

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Business expenses are costs that a business incurs in order to operate.