Financial Literacy Definitions

What is the definition of "Income"?

• Money you owe to someone

• Money you earn from work and investments

• Money you spend on things

• Money taken directly out of your account

What does "Expense" refer to?

• Money you earn from work and investments

• Money you owe to someone

• Money you spend on things

• Extra money you pay when borrowing

Which of the following best describes a "Budget"?

• Money you owe to someone

• Plan that helps you decide how much to spend or save

• Money taken directly out of your account

• An expense that stays the same each month

What is "Debt"?

• Money you earn from work and investments

• Money you owe to someone

• Money you spend on things

• Plan that helps you decide how much to spend or save

What does "Interest" mean in financial terms?

• Money you owe to someone

• Extra money you pay when borrowing, or earned when saving

• Money taken directly out of your account

• An expense that can change from month to month

What is "Credit"?

• Borrowing money to buy something and paying it back later

• Money you earn from work and investments

• Money you spend on things

• An expense that stays the same each month

What does "Debit" refer to?

• Money you owe to someone

• Money taken directly out of your account

• Plan that helps you decide how much to spend or save

• Extra money you pay when borrowing

Which of the following is a "Fixed Expense"?

• An expense that can change from month to month

• An expense that stays the same each month

• Money you owe to someone

• Money you earn from work and investments

What is a "Variable Expense"?

• An expense that stays the same each month

• Money you owe to someone

• An expense that can change from month to month

• Money taken directly out of your account

Which of the following is an example of a "Fixed Expense"?

• Groceries

• Rent

• Water bill

• Entertainment