Financial literacy Flashcards
(12 cards)
Define budget
A plan for managing money/save money for future plans and track expenses, controlling the amount spending and preparing for future emergencies.
Define debt expenses
A person borrowing money from a bank or company which may include interest or fees
What is money earned through employment called?
Income
Difference between credit card and debit card
Credit card - Has a spending limit, help build credit, online purchases, and help with emergencies. Credit cards are borrowing money from the bank to pay back at the end of the month with interest if not paid back. And generally have better security
Debit Card - Takes money directly from your bank account paying things immediately with no interest or have any affect of your credit score, with everyday budgeting and may take longer to recover lost funds.
Difference between employment scam and threat scam
Employment scam intends to receive personal info from the victim making them believe they got a job or job interview from the scammer involving them to sing papers, make deals or contracts. using their information to pretend to be the person or use it to make more illegal actions with their ID.
Threat scams intimidate individuals to get money or information from the victim through physically or psychologically attack the victim.
Define credit card
payment issued by the bank with monthly payments of the money borrowed
What happens when someone doesn’t completely pay off the amount due next month on a credit card
You pay interest, lose grace period (start charging interest immediately on new purchases if not paid back), damage credit score
Should individuals budget?
Yes. Helps control spending, avoid unnecessary purchases, easier to save money and keeping finance under control
What is the age that a person can obtain a credit card
18+
What can help reach financial goals and save money
Budgeting
Define savings
a portion of income you do not spend but set aside for the future
Should individuals own credit cards?
yes. builds credit score, protection, can be useful for emergency purchases, easier to shop online with, offer cash back, points or travel rewards on purchases.
