1) Personal Financial Literacy STAAR Review

Front

What is Personal Financial Literacy?

Back

Personal Financial Literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing.

Front

Define 'Budget'.

Back

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

Front

What is the purpose of saving money?

Back

The purpose of saving money is to set aside a portion of income for future needs or emergencies, allowing for financial security and the ability to make planned purchases.

Front

Explain the concept of 'interest'.

Back

Interest is the cost of borrowing money or the earnings from saving or investing money, usually expressed as a percentage of the principal amount.

Front

What is a 'credit score'?

Back

A credit score is a numerical representation of a person's creditworthiness, based on their credit history and financial behavior.

Front

Define 'debt'.

Back

Debt is an amount of money borrowed by one party from another, which is expected to be paid back with interest.

Front

What is the difference between 'wants' and 'needs'?

Back

Wants are non-essential items or services that enhance quality of life, while needs are essential for survival and basic functioning.

Front

What does 'investing' mean?

Back

Investing is the act of allocating resources, usually money, to generate income or profit over time.

Front

What is an 'emergency fund'?

Back

An emergency fund is a savings account set aside for unexpected expenses or financial emergencies.

Front

Explain the term 'financial goal'.

Back

A financial goal is a specific objective related to money management, such as saving for a car, paying off debt, or planning for retirement.