Financial Literacy Flashcard

Front

What is interest?

Back

Money earned on savings or paid on loans

Front

What is credit?

Back

A loan that you must pay back

Front

What does it mean to invest?

Back

To put money into something with the expectation of making a profit

Front

What is the purpose of a savings account?

Back

To save money and earn interest

Front

Which of the following is a benefit of budgeting? It restricts spending, It helps you track your income and expenses, It guarantees financial freedom, It allows you to avoid all debts

Back

It helps you track your income and expenses

Front

What is a financial goal?

Back

A specific target to achieve financially

Front

What percentage of your income is recommended to put towards necessary expenses?

Back

50%

Front

Explain the difference between a financial want and a need.

Back

A need is essential for survival, while a want is something desired but not necessary.

Front

What was the most useful piece of information you learned in this unit? Options: The importance of data privacy, How to create effective presentations, The basics of machine learning, Time management techniques

Back

The importance of data privacy

Front

Which is not a step in the check writing process? Options: Write only today's date, Use "and" between dollars and cents when writing, Draw a squiggle after the cents to the word "dollar"

Back

Leave the memo blank