Financial Literacy

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What is credit?

Back

Allowing goods and services to be used now with a promise of payment in the future.

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What does it mean to owe money?

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It is called Debt.

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What does it mean to pay back money with interest?

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You have to pay back the money PLUS an additional amount.

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What is borrowing money and paying it back with interest called?

Back

Credit.

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What is interest?

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The amount owed for borrowing money.

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What is a debtor?

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A person who owes money.

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What are assets?

Back

Things that you own that have value.

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What are liabilities?

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Money that you owe to others.

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What is bankruptcy?

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A legal process where a person or business cannot pay their debts.

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What is income?

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Money that you earn from work or investments.