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Financial Literacy Flashcards | StudBud
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Financial Literacy
Financial Literacy
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1
What is a "paycheck"?
A form you fill out to file your taxes
A loan from the bank
Money you borrow from your friends
A document showing how much you earn from a job
2
What does it mean to "invest" money?
To spend all your money on things you need
To borrow money to buy things now
To put money into something in hopes it will grow or earn more
To keep your money in a savings account forever
3
What is "compound interest"?
The fee for borrowing money
A type of tax
Interest that calculated on both the principal and interest already earned
Interest that is calculated only on the intial amount of money
4
What is "saving money"?
Spending all of your money immediately
Borrowing money from someone
Investing in stocks
Keeping money for future needs or emergencies
5
What is a "savings account"?
A type of insurance plan
A place where you can invest money in the stock market
A place where you can borrow money
An account where you keep money safe and can earn interest over time
6
What does the term "diversification" mean in investing?
Saving all your money in a savings account
Borrowing money to invest in one company
Putting all your money in one investment to get the highest return
Spreading your money across different types of investments to reduce risk
7
What is the "interest" on a loan?
The amount of money you borrow
The fee paid to the lender for borrowing money
The amount of money you have saved
The cost of goods and services
8
Which of the following is an example of a "fixed expenses"?
Going out to eat
Buying clothes
Buying a new phone
Monthly rent or mortgage payment
9
What is "insurance"?
A type of investment for growing your wealth
A form of savings for your future
Money you owe to a company
A way to protect yourself from financial loss in accidents or emergencies
10
Why is it important to have an "emergency fund"?
To be able to buy a new car
To go on vacation
To invest in the stock market
To pay for unexpected expenses like medical bills or car repairs
11
What is the main goal of "saving" money?
To spend it on fun activities
To help other people spend money
To have money available for future needs and emergencies
To make money by lending it out
12
What is "credit"?
The ammount of money in your
A savingsaccount with no interest
The ability to borrow money and pay it back later
A type of investment that grows over time
13
What is a "loan"?
A gift of money from the government
Money you borrow that must be paid back with interest
Money saved in a bank account
Money you give away to help others
14
What is "inflation"?
The money you make from your job
The increase in the prices of goods and services over time
The value of money in your bank account
A decrease in the amount of money you owe
15
What is the difference between a "need" and a "want"?
Needs are things you must have to live;wants are things that are OK to have
Needs are things you can live without; wants are things you must have
Needs are things you can buy on credit; wants are things you can't afford
There is no difference
16
What is the "stock market"?
A place where you can exchange goods and services
A marketplace where people buy and sell shares of companies
A store that sells stocks of food and supplies
A government office that controls money
17
What is the purpose of a "bank account"?
To invest in the stock market
To hide your money from the government
To store your money safely
To lend money to others
18
What does a "budget" help do?
Invest in the stock market
Spend all your money
Track your income and expenses
Save money for avacation
19
What is a "credit score"?
A score given by your bank for saving money
A measure of how much money you haved saved
The score you get on your tax return
A number that shows how well you manage debt and credit
20
What does "debt" mean?
Money you save in a bank account
Money you earn from your job
Money you owe to others
Money you spend on food and entertainment
