Financial Literacy Review
Terms in this set (21)
the next best alternative that was given up by making a certain decision.
a plan for spending or saving money that is made up of income and expenses. Can include savings and charitable giving.
an expense that occurs regularly. This amount typically does not change from month-to-month.
spending that is based on the purchase decisions you make. These can vary from month to month.
money you earn, like money you may get from your birthday or allowance from you parents.
amount paid based on a certain time period. You can a certain wage per hour, day, or week.
a fixed payment, usually paid on a weekly or bi-weekly basis that does not vary depending on how little or how much you work
Education and Training
The more education and training you receive, the more money you will earn in your career.
measures the amount of a specific good or service available for a given price.
measures the number of people who are willing to buy a particular good or service at a given price. In a labor market, demand is the number of employers seeking workers for a particular position.
positive earnings, when you have earned more in revenue than you spent on expenses.
the amount of money a business makes within a specific time period, typically a month
a type of savings vehicle in which interest is earned on the deposit amount (principal). Savings accounts usually require a minimum balance, offer lower interest rates, and have restrictions on the number of withdrawals allowed within a given time period.
when the price of goods or services increases.
when the price of goods or services decreases.
a type of car insurance that covers any damage caused to another person or their vehicle.
the amount you pay the insurance company for coverage, typically paid each month.
amount you are personally required to pay before your insurance covers the cost .
a payment type that does not automatically draw money from your checking account. It provides a short-term loan from the credit card company. At the end of each purchase period (usually a month), you receive a bill with all of your charges. You will have the option to pay off your balance (the amount you owe) or pay the minimum payment. If you do not pay your entire balance, you start to pay interest on the money you owe.
a payment type that allows you to make purchases using money directly from your checking account.
a three-digit numerical rating of how likely you are to pay off your debts and determines if a company will loan you money or not.