Financial Literacy Midterm

Budget

A written plan for giving, saving, and spending.

Income

money received for work, as a gift, or through investments

Spending

money or financial resources expended by a person, group, or government.

Financial Stability

A steady flow of money in and out responsibly, even in times of hardship.

Short Term Financial Goal

A goal for your money that's doesn’t need to be saved up for for more than a year.

Long Term Financial Goal

A goal that requires multiple years to save for.

Investing

expend money with the expectation of achieving a profit.

Expense

the cost of goods or services; money paid out

Personal Budget

Money that is available for or designed for a specific personal purpose.

S.M.A.R.T. Goals

a framework for creating effective goals by ensuring they are Specific, Measurable, Achievable, Relevant, and Time-bound

Unplanned Income Changes/Emergency Funds

An emergency fund is a cash reserve designed to cover sudden financial expenses so you don't have to rely on your regular savings account

Fixed Expense

expense that remains the same from month to month

Variable Expense

Variable Expense

Discretionary (non-essential) Expense

expense for things you don’t need.

Irregular Income

income that comes in at different amounts or at different times, or both

Intermittent Expense

expense that occurs at various times throughout the year and tends to be in large, lump sums.

Twenty-First Century Skills

• Critical thinking

• Communication skills

• Creativity

• Problem solving

• Perseverance

• Collaboration

• Information literacy

• Technology skills and digital literacy

• Media literacy

• Global awareness

• Self-direction

• Social skills

• Literacy skills

• Civic literacy

• Social responsibility

• Innovation skills

• Thinking skills

Regular Paycheck

Base wage plus pay steps.