Basic Financial Literacy

Income

• Money a person earns from working, doing chores, or other sources.

• A type of investment that generates profit.

• A fixed amount paid to someone for their services.

• The total value of all assets owned by an individual.

Budget

• A plan for how you will spend and save your money.

• A document that tracks your expenses only.

• A method to increase your income without spending.

• A strategy to avoid all financial commitments.

Hourly Pay

• When you earn money based on how many hours you work.

• When you receive a fixed salary regardless of hours worked.

• When you earn bonuses based on performance.

• When you are paid weekly regardless of hours worked.

Expenses

• Things you spend money on, like food, clothes, or rent.

• Items that increase your income.

• Things you save for future use.

• Unnecessary purchases that can be avoided.

Salary

• A fixed amount of money you earn every year, no matter how many hours you work.

• An hourly wage that varies based on the number of hours worked.

• A bonus paid at the end of the year based on performance.

• A commission based on sales made during the month.

Gross Income

• The total amount of money you earn after taxes and deductions.

• The total amount of money you earn before anything is taken out (like taxes).

• The amount of money you have left after expenses.

• The amount of money you save from your earnings.

What does it mean to "PYF"?

• Pay Yourself First.

• Pay Your Fees.

• Pay Your Friends.

• Pay Your Future Self.

Savings

• Money you keep and don’t spend so you can use it later.

• Money that you spend immediately on goods and services.

• Money that is invested in stocks and bonds.

• Money that is borrowed from a bank.

Financial Goal

• Something you want to save up for, like a new backpack or game.

• A type of investment that guarantees high returns.

• A plan to spend all your money quickly.

• A method to avoid saving for future needs.

Wants vs. Needs

• Wants are essential for survival, while needs are optional.

• Wants are things you must have, while needs are nice to have.

• Wants are nice to have (like a new phone); needs are things you must have (like food and shelter).

• Wants and needs are the same and can be used interchangeably.