Financial Literacy Flashcard Set 2s

Front

The primary sources of income for most people between the ages of 20 and 35 who are not living on a pension or social security are:

Back

Salaries, wages, and tips

Front

The process of setting aside money and putting it to work by having it earn interest or dividends or gain value in the equities market with the idea of having additional funds to use in the future is described as:

Back

Saving and investing

Front

The purpose of Insurance is NOT to:

Back

Diversify an investment portfolio

Front

The term used to describe the ease and speed with which you can convert savings or an investment to cash is:

Back

Liquidity

Front

The type of credit card issued by an oil company, bank, or department store is:

Back

A revolving charge card

Front

To improve an UNFAVORABLE credit rating, a person should

Back

pay bills on time.

Front

To make sure you will always remember your automated teller machine (ATM) card personal identification number (PIN), you should write the PIN and keep it:

Back

In a secure place at home

Front

Troy has $50 a month transferred electronically from his checking account to his savings account. This is an example of:

Back

A savings plan

Front

Using someone else's money, promising to repay at a future date, and paying a fee for use of the money, is the definition for:

Back

Credit

Front

What action should a person take who must make a tuition payment at the end of August each year?

Back

Decide how much money will be needed and then place 1/12th of that amount in a separate account each month.