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WorksheetsFuture Smart: Financial Literacy Terms
Total questions: 100
Worksheet time: 2hrs 40mins
What is the term for the following definition? 'A retirement account offered through an employer, where an employee can contribute money from his or her paycheck before or after taxes.'
401(k)
Roth IRA
Health Savings Account (HSA)
Certificate of Deposit (CD)
What is the term for the following definition? 'A savings account that is specifically designed to help you and your family save for high education. The money in the account can only be used to pay for educational expenses, like tuition, room and board, and textbooks.'
529 College savings plan
Roth IRA
Health Savings Account (HSA)
Certificate of Deposit (CD)
What is the term for the following definition? 'Interest rate charged by a credit card company on any outstanding credit card balance.'
Annual percentage rate
Minimum payment
Credit limit
Grace period
What is the term for the following definition? 'The most a person has to pay for medical services in a full year, outside of monthly premiums.'
Annual out-of-pocket maximum
Deductible
Copayment
Lifetime maximum
What is the term for the following definition? 'A type of degree that typically takes two years of fulltime study after high school and is dedicated training toward a specific career or skill.'
Associate degree
Bachelor's degree
Doctorate degree
Certificate program
What is the term for the following definition? 'An abbreviation that stands for Automated Teller Machine. An ATM is a machine that allows you to make electronic deposits and withdrawals from your bank accounts.'
ATM
PIN
CPU
URL
What is the term for the following definition? 'The amount of money you are charged for using another bank’s ATM.'
ATM fee
Overdraft fee
Monthly maintenance fee
Service charge
What is the term for the following definition? 'A system that allows you to pay bills, like your cell phone bill, automatically from your checking account.'
Auto pay
Manual transfer
Check deposit
Wire transfer
What is the term for the following definition? 'A type of degree that normally takes four years of fulltime study, also known as an undergraduate degree. You can earn a Bachelor of Science or Bachelor of Arts degree.'
Bachelor’s degree
Master’s degree
Associate’s degree
Doctorate degree
What is the term for the following definition? 'The people that are financially protected under a life insurance policy.'
Beneficiary
Policyholder
Insurer
Agent
What is the term for the following definition? 'An interest-earning loan to a company or government for a specific amount of time. At the end of the set amount of time, the company or government must pay back the loan amount in full, along with any accumulated interest. Bonds are often considered a low-risk investment.'
Bond
Stock
Mutual Fund
Certificate of Deposit
What is the term for the following definition? 'A plan for spending or saving money that is made up of income and expenses.'
Budget
Loan
Tax
Invoice
A type of insurance that covers any damage you may cause to another person or their vehicle. Fill in the blank: __________
Car insurance
Health insurance
Life insurance
Home insurance
A type of savings vehicle in which you put your money away for a certain amount of time, called a term, to allow your principal to earn interest. Also known as a CD, this savings vehicle traditionally has higher interest rates than a savings account and you must keep the money in the CD for the entire term or you will pay a penalty. Fill in the blank: __________
Certificate of deposit
Money market account
Checking account
Savings bond
A type of bank account in which interest is not usually applied to the principal but offers a safe place to store your money and allows you to make withdrawals using an ATM card, debit card or personal check. Fill in the blank: __________
Checking account
Savings account
Fixed deposit account
Recurring deposit account
Money that a person is required to pay for services, after a deductible has been paid. Fill in the blank: __________
Coinsurance
Premium
Copayment
Out-of-pocket maximum
A type of car insurance that covers vehicle damage caused by an accident. Fill in the blank: __________
Collision insurance
Comprehensive insurance
Liability insurance
Personal injury protection
Typically, a two-year higher education institution, also known as a junior college that costs less than a four-year college. Fill in the blank: __________
Community college
University
Vocational school
Technical institute
Interest that's generated not only from the money you put into an account, but also from the interest you earned on your money. Fill in the blank: __________
Compound interest
Simple interest
Fixed interest
Nominal interest
A type of car insurance that covers vehicle damages caused by non-collision events, such as storm damage or theft. Fill in the blank: __________
Comprehensive insurance
Collision insurance
Liability insurance
Personal injury protection
A fixed fee you pay for specific medical services. Fill in the blank: __________
Copay
Deductible
Premium
Coinsurance
An agency that tracks a borrower's credit and payment history to determine their credit score. Fill in the blank: __________
Credit bureau
Loan officer
Bank branch
Insurance company
A payment type that does not automatically draw money from your checking account. It provides a short-term loan from the credit card company. At the end of each purchase period (usually a month), you receive a bill with all of your charges. You will have the option to pay off your balance (the amount you owe) or pay the minimum payment. If you do not pay your entire balance, you start to pay interest on the money you owe. What is this payment type?
Credit card
Debit card
Prepaid card
Gift card
A statement showing the total amount of money owed based on your credit card transactions. Fill in the blank: __________
Credit card bill
Bank statement
Loan agreement
Receipt
The total amount of money you can charge to your credit card. Fill in the blank: __________
Credit limit
Interest rate
Minimum payment
Billing cycle
A three-digit numerical rating of how likely you are to pay off your debts. Fill in the blank: __________
Credit score
Interest rate
Loan amount
Payment term
A payment type that allows you to make purchases using money directly from your checking account. Fill in the blank: __________
Debit card
Credit card
Gift card
Prepaid card
Amount you are personally required to pay before your insurance covers the cost. Fill in the blank: __________
Deductible
Premium
Copayment
Out-of-pocket maximum
When the price of goods or services decreases. Fill in the blank: __________
Deflation
Inflation
Stagnation
Depreciation
Measures the number of people who are willing to buy a particular good or service at a given price. In a labor market, demand is the number of employers seeking workers for a particular position. Fill in the blank: __________
Demand
Supply
Profit
Wage
When money is added into a bank account, also known as a 'credit'. Fill in the blank: __________
Deposit
Withdrawal
Transfer
Loan
When money is automatically transferred into your account electronically. Fill in the blank: __________
Direct deposit
Wire transfer
Cheque deposit
Cash withdrawal
_______: spending that you have complete control over because it is not necessary spending.
Discretionary expense
Fixed expense
Mandatory expense
Essential expense
_______: a type of degree that is highly specialized in regard to a specific profession and typically takes three to five years to earn after completing your bachelor's degree.
Doctoral degree
Associate degree
Certificate program
Diploma
_______: a piece of economic data that is used to interpret current or future investment possibilities and judge the overall health of an economy.
Economic indicators
Market shares
Trade deficits
Interest rates
_______: a network of consumers and producers of goods and services in a community.
Economy
Government
Ecosystem
Society
_______: an account used to put away funds to be used in an emergency.
Emergency savings
Retirement account
Checking account
Investment portfolio
_______: a term used in the college financial aid process to determine an applicant's eligibility for need-based student aid, abbreviation EFC.
Expected family contribution
Estimated financial calculation
Educational funding credit
Eligible family cost
_______: the money you're spending. This includes everything you buy, such as food, concert tickets, or even a pack of gum.
Expenses
Income
Savings
Investments
_______: an abbreviation for Free Application for Federal Student Aid. This is the main form students use to apply for federal education grants and loans. The amount of money a student is given or loaned depends on several factors, such as family income, marital status, the type of school a student is planning to attend, and more.
FAFSA
SAT
ACT
CSS
_______: is the amount of money a family saves over time to help fund a relative's college education.
Family Savings
Student Loan
Scholarship
Grant
_______: stands for the Federal Deposit Insurance Corporation, and is corporation that insures deposits at banks that have purchased their coverage.
FDIC
FBI
IRS
SEC
_______: a tax paid to the federal government based on the amount of money a person earns. Federal income taxes are used to fund government services such as healthcare, national defense, and scientific programs.
Federal income tax
Sales tax
Property tax
Excise tax
_______: are offered to students in need of financial assistance. The federal government makes interest payments while the student is in college.
Federal loans
Private loans
Scholarships
Work-study programs
_______: an expense that occurs regularly. This amount typically does not change from month-to-month.
Fixed expenses
Variable expenses
Discretionary expenses
Irregular expenses
_______: provide money to students for college that does not have to be paid back.
Grant
Loan
Scholarship
Work-study
_______: a type of insurance that covers the cost of medical expenses.
Health insurance
Life insurance
Auto insurance
Home insurance
_______: the degree you receive when you graduate from high school.
High school diploma
Bachelor's degree
Associate's degree
Master's degree
_______: a type of insurance that covers your home as well as your possessions inside, in cases of damage or loss.
Homeowner's insurance
Life insurance
Auto insurance
Health insurance
_______: money you earn, like money you may get from your birthday or allowance from your parents.
Income
Debt
Expense
Loan
_______: tax on the amount of money you earn that is paid to the federal or state government.
Income tax
Sales tax
Property tax
Excise tax
_______: when the price of goods or services increases.
Inflation
Deflation
Stagnation
Depreciation
_______: is the amount of money that was previously sitting in your checking account.
Initial deposit check
Withdrawal slip
Overdraft fee
Monthly statement
What is the term for the following definition: 'typically, a discounted cost of enrollment for a higher education institute that is given to students that are from the same state the school is located in'?
In-state tuition
Out-of-state tuition
Scholarship
Student loan
What is the term for the following definition: 'a monetary fee you are charged for borrowing money'?
Interest
Dividend
Principal
Premium
What is the term for the following definition: 'the percentage of interest you either make or pay on a principal'?
Interest rate
Principal amount
Compound period
Maturity value
What is the term for the following definition: 'how much money you could potentially earn from an investment, and it is usually expressed as a percentage'?
Investment return
Investment risk
Investment period
Investment principal
What is the term for the following definition: 'how likely it is that you'll lose money on an investment'?
Investment risk
Investment return
Asset allocation
Market timing
What is the term for the following definition: 'the higher the risk, the higher the potential return or loss, and the lower the risk, the lower the potential return or loss'?
Investment summary
Risk-return tradeoff
Asset allocation
Market equilibrium
What is the term for the following definition: 'abbreviation for an “Individual Retirement Account”, a retirement account designed for individual savers that offers tax savings, but has contribution limits and withdrawal restrictions'?
IRA
401(k)
Roth
CD
What is the term for the following definition: 'refers to the talent and expertise a person possesses to perform a certain job or task'?
Job skills
Workplace location
Company policy
Office equipment
What is the term for the following definition: 'a type of car insurance that covers any damage caused to another person or their vehicle'?
Liability insurance
Comprehensive insurance
Collision insurance
Personal injury protection
What is the term for the following definition: 'a type of insurance that provides financial security for a person (called a beneficiary) when someone close to them passes away'?
Life insurance
Health insurance
Auto insurance
Home insurance
What is the term for the following definition: 'Liquidity refers to how easy it is to get at your money. High liquidity means it’s easy to get your money right away. Low liquidity means it’s harder to access your funds.'?
Liquidity
Interest
Inflation
Credit
What is the term for the following definition: 'negative earnings, or when your earned revenue is less than your total expenses'?
Loss
Profit
Revenue
Dividend
What is the term for the following definition: 'after completing a bachelor’s degree, you can continue on to complete a master’s program in a variety of fields. This type of degree typically takes one or two years, but can sometimes be completed on evenings and weekends, while you’re working full-time.'?
Master’s degree
Associate degree
Doctorate degree
Certificate program
What is the term for the following definition: 'tax that pays for healthcare for people ages 65 and over'?
Medicare tax
Social Security tax
Income tax
Property tax
What is the term for the following definition: 'the amount of money you must keep in your account'?
Minimum balance
Interest rate
Withdrawal limit
Overdraft fee
What is the term for the following definition: 'in regard to credit cards, this refers to the least amount of money you have to pay back on a monthly basis to avoid fees and penalties associated with not paying the minimum amount'?
Minimum monthly payment
Credit limit
Annual fee
Interest rate
What is the term for the following definition: 'a type of loan used to finance the purchase of real estate'?
Mortgage
Credit Card
Personal Loan
Auto Loan
What is the term for the following definition: 'is a mix of different investments, like stocks and bonds'?
Mutual fund
Savings account
Credit card
Loan
What is the term for the following definition: 'when referring to budgeting, a need is an expense that you can’t live without'?
Need
Want
Luxury
Desire
What is the term for the following definition: 'the amount of pay you take home after all taxes are taken out'?
Net pay
Gross pay
Taxable income
Deductions
What is the term for the following definition: 'the amount of money a business makes, after all expenses have been paid for (net income = revenue - expenses)'?
Net income
Gross income
Revenue
Operating cost
What is the term for the following definition: 'the next best alternative that was given up by making a certain decision'?
Opportunity cost
Sunk cost
Marginal cost
Fixed cost
What is the term for the following definition: 'taking out more money than what is in an account'?
Overdraft
Deposit
Interest
Balance
A fee incurred when you take out more money than what is in your bank account is called ________.
Overdraft fee
Service charge
ATM withdrawal fee
Monthly maintenance fee
A loan in the form of cash before you receive your paycheck, also known as 'cash advances.' Payday loans typically have very high fees and interest rates. This is called a ________.
Payday loan
Mortgage
Student loan
Auto loan
A card that allows you to put a specific amount of money onto it. Prepaid cards usually come with additional fees and charges, such as an activation fee, a fee for each purchase, or fees if you don’t use the card for a specific amount of time. This is called a ________.
Prepaid card
Credit card
Debit card
Gift card
The amount you pay the insurance company for coverage, typically paid each month, is called a ________.
Premium
Deductible
Copayment
Claim
A higher education institute that is generally supported by private donations and tuition, and on average cost more than public colleges, is called a ________.
Private college
Community college
Public university
Vocational school
Loans financed by lenders, like banks, credit unions and sometimes the school you attend, are called ________.
Private loans
Federal grants
Scholarships
Work-study loans
Positive earnings, when you have earned more in revenue than you spent on expenses, is called ________.
Profit
Loss
Debt
Expense
A higher education institute that is generally supported by state government funds, and on average cost less than private institutions, is called a ________.
Public college
Private college
Community center
Vocational school
The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy is called ________.
Purchasing power
Inflation rate
Exchange rate
Interest rate
A type of insurance that can protect a person from property damage or loss in a rental property is called ________.
Renter’s insurance
Health insurance
Auto insurance
Life insurance
The amount of money a business makes within a specific time period, typically a month, is called ________.
Revenue
Expense
Liability
Asset
A fixed payment, usually paid on a weekly or bi-weekly basis that does not vary depending on how little or how much you work, is called a ________.
Salary
Commission
Hourly wage
Bonus
The tax you pay to the state or local government when purchasing an item. Sales tax differs by state and not all states have a sales tax. This is called ________.
Sales tax
Income tax
Property tax
Excise tax
A type of savings vehicle in which interest is earned on the deposit amount (principal). Savings accounts usually require a minimum balance, offer lower interest rates, and have restrictions on the number of withdrawals allowed within a given time period. This is called a ________.
Savings account
Checking account
Certificate of deposit
Money market account
A specific amount of money given to a student to help pay for their education is called a ________.
Scholarship
Loan
Tuition
Grant
Money a property owner holds onto during the leasing period, that can later be used to pay for any damages to the property caused by the renters. The security deposit is usually equal to one month’s rent. This is called a ________.
Security deposit
Lease agreement
Rental fee
Maintenance charge
Interest that is generated from the money you put into an account is called ________.
Simple interest
Compound interest
Annual yield
Dividend
Tax that pays for people who are currently retired and for the future retired population is called ________.
Social security tax
Income tax
Sales tax
Property tax
Taxes paid to the state where you live or work based on the amount of money you earn. State income taxes are used to help support schools, maintain roads and keep people safe. The amount of state income tax varies by state – some states do not have state income tax at all. This is called ________.
State income tax
Federal income tax
Property tax
Sales tax
A fixed amount paid for work, usually on a scheduled basis or after a set amount of time is called _________.
Stipend
Commission
Bonus
Wage
What is a small piece of ownership in a company called?
Stock
Bond
Loan
Dividend
A place to trade stocks is known as the _________.
Stock exchange
Supermarket
Library
Bank
What measures the amount of a specific good or service available for a given price?
Supply
Demand
Price
Revenue
The amount taken out of a paycheck to pay for income taxes is called _________.
Taxes withheld
Gross pay
Net pay
Deductions
