Financial Literacy Final Exam Review

A collection of flashcards focusing on key vocabulary related to financial literacy topics including banking, savings, investments, credit, insurance, and budgeting.

Debit Card

A payment card that deducts money directly from a checking account to pay for a purchase.

Savings Account

An account primarily used for depositing money one plans to save, often with interest.

Checking Account

An account used for depositing money that one plans to spend, allowing easy access to funds.

Mobile Banking App

A mobile application that allows users to access banking services on their smartphones.

Target Date Funds

Investment funds designed for investors with specific retirement dates in mind.

Credit Card

A card that allows holders to borrow funds up to a certain limit to make purchases, with the obligation to pay back the borrowed amount.

Annual Percentage Rate (APR)

The interest rate for a whole year, expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan.

Secured Credit Card

A credit card backed by a cash deposit from the cardholder, reducing the risk to the lender.

FAFSA

Free Application for Federal Student Aid, a form used to determine eligibility for student financial aid.

Risk Pooling

The concept where multiple individuals pay into an insurance pool to share the risk and costs associated with claims.