BizTown Financial Literacy Vocab!

Question 1

Scarcity:

Accepted Answer

Limited resources that prevent people from having everything they want

Question 2

Financial Institution:

Accepted Answer

A business that provides money services (banks, etc.)

Question 3

NEEDS:

Accepted Answer

Goods and services needed to survive: food, water, shelter, clothing

Question 4

Ms. Alfaro has a Savings Account as well as her normal checking account. What is a savings account?

Accepted Answer

Account where people put money for the future, & money grows with interest

Question 5

Bankruptcy is a complicated process for those who owe too much money:

Accepted Answer

Legal process gives debtors (people who owe $) protection from creditors

Question 6

Cash:

Accepted Answer

Money in forms of bills or coins

Question 7

Income is ....

Accepted Answer

Money received through work or investments

Question 8

Check:

Accepted Answer

A written order from a bank to pay for something

Question 9

Credit:

Accepted Answer

The amount of financial "trust" a person has. Banks use this to give loans

Question 10

PAY YOURSELF FIRST (PYF) is:

Accepted Answer

To automatically save money from paychecks so you can use it in the future

Question 11

Variable Expenses:

Accepted Answer

Expenses that are different each month (entertainment, doctor bills, etc)

Question 12

Values:

Accepted Answer

The ideals that are important to you and your career choice

Question 13

Taxes:

Accepted Answer

Required payments to the government (help pay for military and roads)

Question 14

NET MONTHLY INCOME (NMI) is:

Accepted Answer

Income or "take home pay" after a month's worth of deductions (taxes, etc.)

Question 15

Impulse buying:

Accepted Answer

Making a purchase based on wanting it or pressure from advertisements

Question 16

WANTS:

Accepted Answer

Something you want, but not necessary

Question 17

Interests:

Accepted Answer

Things you enjoy, and enjoy doing

Question 18

What is a stock?

Accepted Answer

A share of a corporation/company sold to the public (people)

Question 19

Credit Card:

Accepted Answer

A card that can pay for goods and services, and be paid back LATER

Question 20

A BOND is:

Accepted Answer

IOU (I Owe You) made by a company/the gov to someone in exchange for a loan

Question 21

What is a career cluster:

Accepted Answer

A group of jobs or industries that are similar in skill or products

Question 22

Risks:

Accepted Answer

The possibility of financial loss or losing money

Question 23

Interest is added when you borrow money (with a credit card or loan). What is it?:

Accepted Answer

An extra fee you have to pay when you pay back borrowed money :(

Question 24

Short-term goals:

Accepted Answer

Goals that take less than a year

Question 25

Expenditures:

Accepted Answer

Money spent on goods and services

Question 26

Discretionary Income:

Accepted Answer

"Fun money" to spend, money leftover after after bills and needs

Question 27

Bank:

Accepted Answer

For-profit institution that offers loans, mortgages, & banking services

Question 28

Debit:

Accepted Answer

Using money from YOUR bank account, money you have now

Question 29

GROSS MONTHLY INCOME (GMI) is:

Accepted Answer

Total amount of money made in one month before deductions (taxes, etc.)

Question 30

BUDGET:

Accepted Answer

A plan/record of income and how you spend your money

Question 31

Social Security is:

Accepted Answer

A social insurance plan for people retired, sick, or disabled.

Question 32

Aptitudes:

Accepted Answer

Your natural talents

Question 33

NET ANNUAL INCOME (NAI) is:

Accepted Answer

Income remaining (leftover) after a year's worth of deductions(taxes, etc.)

Question 34

It may be smart to invest in Mutual Funds. What are they?

Accepted Answer

A collection of stocks and bonds of various corporations

Question 35

Ms. Alfaro wishes she can but everything she wants, but there's an OPPORTUNITY COST when you spend money. What is it?

Accepted Answer

The next best alternative or thing given up when making a financial choice

Question 36

Income tax:

Accepted Answer

Money taken from your income to pay the government

Question 37

Debt:

Accepted Answer

Money you owe

Question 38

Ms. Alfaro will Invest her money into ice cream shops. What is investing?

Accepted Answer

Committing money/putting money towards something to hopefully make a profit

Question 39

Fixed Expenses:

Accepted Answer

Expenses that do NOT change each month, same amount each month

Question 40

Debit Card:

Accepted Answer

A card that works like cash; money taken from your bank account immediately

Question 41

Abilities:

Accepted Answer

Things you do well

Question 42

Online banking:

Accepted Answer

An electronic way to check your bank accounts (through a website or app)

Question 43

Principal:

Accepted Answer

The amount of money originally owed or invested (before interest)

Question 44

Long-term Goals:

Accepted Answer

Goals that take more than a year

Question 45

When Ms. Alfaro is old, she will receive Medicare. What is it?

Accepted Answer

Health insurance for retired people over 65 years old

Question 46

GROSS ANNUAL INCOME (GAI) is:

Accepted Answer

Total pay or money made in one year before deductions (taxes, et.c)

BizTown Financial Literacy Vocab!

Questions 46

BizTown Financial Literacy Vocab!

Questions 46