Financial Literacy

Front

What is a fixed expense?

Back

A fixed expense is an expense that is paid every month for the same amount, such as a car payment or rent.

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What is a variable expense?

Back

A variable expense is an expense that can change from month to month, such as groceries or entertainment.

Front

What is the purpose of a bank?

Back

The purpose of a bank is to keep money safe and to lend money.

Front

Give an example of a fixed expense.

Back

An example of a fixed expense is a car payment.

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Give an example of a variable expense.

Back

An example of a variable expense is a shopping trip to the mall.

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Where can you save your money?

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You can save your money in a piggy bank, a savings account at the bank, or in stocks or investments.

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What is a savings account?

Back

A savings account is a bank account that earns interest on the money you deposit.

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What does it mean to budget?

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To budget means to plan how to spend your money wisely.

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What is interest?

Back

Interest is the money paid to you by the bank for keeping your money in a savings account.

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What is a loan?

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A loan is money borrowed from a bank or other lender that must be paid back with interest.