Financial Literacy

Question 1

Salary

Answer 1

This is typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee

Question 2

Earned

Wages

Answer 2

Includes wages, salaries, bonuses, commissions, tips, and net earnings from self-employment. It can also include long-term disability and union strike benefits and, in some cases, payments from certain deferred retirement compensation arrangements.

Question 3

Fixed

Expenses

Answer 3

An expense whose total amount does not change when there is an increase in an activity such as sales or production.

Question 4

Budget

Answer 4

A financial plan for a defined period, often one year.

Question 5

Wage

Answer 5

A fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee

Question 6

Net worth

Answer 6

The value of the assets a person or corporation owns, minus the liabilities (debts) they owe.

Question 7

Credit card

Answer 7

A line of credit that can be used to make purchases, balance transfers and/or cash advances and requiring that you pay back the loan amount in the future.

Question 8

Credit history

Answer 8

A measure of their ability to repay debts and demonstrated responsibility in repaying debts. A person’s credit history is recorded in their credit report.

Question 9

Credit report

Answer 9

This details the number and types of credit accounts, how long each account has been open, amounts owed, the amount of available credit used, whether bills are paid on time, and the number of recent credit inquiries.

Question 10

Checking account

Answer 10

A deposit account held at a financial institution that allows withdrawals and deposits.

Question 11

Checking register

Answer 11

Also called a cash disbursements journal, is where you record all of the check and cash transactions you have made during a certain amount of time.

Question 12

Transfer

Answer 12

An act of moving something or someone to another place.

Question 13

Balance

Answer 13

A situation in financial planning where the total expected revenues are equal to the total planned spending.

Question 14

Borrowers

Answer 14

A person or organization that takes out a loan from a bank under an agreement to pay it back later, typically with interest.

Question 15

Assets

Answer 15

Owned by a person or company, regarded as having value and available to meet debts.

Question 16

Grant

Answer 16

Money given for college that does not need to be paid back. It is often awarded in the case of financial need.

Question 17

Scholarships

Answer 17

A payment made to support a student’s education awarded on the basis of achievement (such as academics or sports.) These do NOT have to be paid back.

Question 18

Student loans

Answer 18

Money borrowed from the federal government or a private bank that must be paid back.

Question 19

Lenders

Answer 19

An organization or person that lends money.

Question 20

Liability

Answer 20

A thing for which someone is responsible, especially a debt or financial obligation.

Question 21

Gross income

Answer 21

The amount of money earned BEFORE taxes or deductions.

Question 22

Net income

Answer 22

The amount of money earned AFTER taxes and other deductions are taken out.