Financial Literacy Review

Front

What is a tax on retail products based on a set percentage of retail cost?

Back

Sales tax

Front

What is a fixed expense?

Back

An expense that remains the same each month.

Front

What is the term for the money in your account?

Back

Balance

Front

What are examples of fixed expenses?

Back

Rent payment, car payment, insurance premiums.

Front

What is the difference between fixed and variable expenses?

Back

Fixed expenses remain constant each month, while variable expenses can fluctuate.

Front

What is a budget?

Back

A plan that outlines expected income and expenses over a specific period.

Front

What is the purpose of an emergency fund?

Back

To cover unexpected expenses without going into debt.

Front

What is interest?

Back

The cost of borrowing money or the return on investment for savings.

Front

What is a credit score?

Back

A numerical representation of a person's creditworthiness.

Front

What is the difference between gross income and net income?

Back

Gross income is total earnings before deductions; net income is what remains after deductions.