Financial Literacy Flashcard

Front

Which of the following is considered a need rather than a want? Video game console, Food, Designer shoes, Movie tickets

Back

Food

Front

When creating a budget, it is important to:

Back

Balance your income with your expenses.

Front

Which of the following is a type of investment? Loan, Savings account, Credit card, Piggy bank

Back

Savings account

Front

What is the consequence of not paying your bills on time?

Back

Incurring late fees

Front

How can you avoid going into debt?

Back

Create a budget to see how much money you can spend.

Front

What is the best way to start saving money for the future? Options: Spend all your money now, Put away your income balance every month., Only save money from gifts, Never save money

Back

Put away your income balance every month.

Front

Which of the following is an example of a fixed expense? Groceries, Entertainment, Rent, Clothing

Back

Rent

Front

What is the meaning of the term "interest" when discussing loans or savings accounts?

Back

Interest refers to the cost of borrowing money or the return on investment for savings.

Front

Why is it important to compare prices before making a purchase?

Back

To save money

Front

What is the purpose of a savings or emergency fund?

Back

To cover unexpected expenses