Financial Literacy TEKS 5.10

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What is financial literacy?

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

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What is a budget?

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

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What is the purpose of saving money?

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Saving money allows individuals to set aside funds for future needs, emergencies, or specific goals.

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What is a credit card?

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A credit card is a payment card that allows users to borrow funds from a pre-approved limit to make purchases.

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What is a processing fee?

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A processing fee is a charge applied for handling a transaction, often associated with credit card payments or checks.

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What is sales tax?

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Sales tax is a tax imposed on the sale of goods and services, calculated as a percentage of the purchase price.

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What is the difference between actual cost and total cost?

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Actual cost refers to the base price of an item, while total cost includes additional expenses like taxes and fees.

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What does it mean to balance a budget?

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Balancing a budget means ensuring that total income equals total expenses, preventing overspending.

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What is an expense?

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An expense is any cost incurred in the process of earning income or maintaining a budget.

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What is income?

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Income is the money received, typically on a regular basis, for work or through investments.