Finance 5th Grade

Front

What is a credit card?

Back

A credit card is a payment card that allows the cardholder to borrow funds from a pre-approved limit to pay for goods and services, functioning similarly to a loan.

Front

What are deductions in the context of a paycheck?

Back

Deductions are amounts of money that are subtracted from an employee's gross pay, which can include taxes, insurance, and retirement contributions.

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What is a debit in banking terms?

Back

A debit is an amount of money taken out of a bank account, reducing the account balance.

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What is property tax?

Back

Property tax is a tax assessed on real estate properties, based on the value of the property owned, such as houses, cars, and land.

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What is net income?

Back

Net income is the amount of money an individual takes home after all deductions have been subtracted from their gross income.

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What is gross income?

Back

Gross income is the total income earned by an individual before any deductions or taxes are taken out.

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What is the purpose of a budget?

Back

A budget is a financial plan that outlines expected income and expenses over a specific period, helping individuals manage their finances.

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What is the difference between fixed and variable expenses?

Back

Fixed expenses are costs that do not change from month to month, such as rent or mortgage payments, while variable expenses can fluctuate, like groceries or entertainment.

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What is interest in finance?

Back

Interest is the cost of borrowing money, usually expressed as a percentage of the amount borrowed, or the earnings on savings.

Front

What is a savings account?

Back

A savings account is a deposit account held at a financial institution that provides a modest interest rate and allows for easy access to funds.