Financial Literacy Flashcards 1

media

The separate ways information is shared with the public (TV, internet, social media, newspapers, etc.) that can influence what people buy and how they think about money.

decision-making process

A step-by-step way of making choices by identifying the problem, considering options, weighing pros and cons, and making the best choice.

routine decision

A small, everyday choice that does not require much thought, like buying lunch or choosing what to wear.

major decision

A big choice that can have long-term effects on your life, such as choosing a career or buying a car.

manage

To take control and make careful decisions about your time, money, and resources.

phisher

A scammer who tricks people into giving personal or financial information online by pretending to be a real company.

bait and switch

A dishonest sales trick where a seller advertises a product at a low price (“bait”) but then pressures the customer to buy a more expensive item instead (“switch”).

free enterprise system

An economy where people can own businesses and make decisions about what to produce, how much to charge, and what to buy, with limited government control.

supply and demand

The economic idea that prices depend on how much of something is available (supply) and how much people want it (demand).

priority

Something that is more important than other things and should be done or paid for first.

values

The beliefs and principles that guide a person’s decisions about money and life.

trade-off

What you give up when you choose one option over another.

empowerment

Gaining the knowledge and confidence to make smart financial and personal decisions.

financial literacy

The ability to understand money, budgeting, saving, credit, and making smart financial choices

financial freedom

Having enough savings, income, and financial security to live the life you want without constant money stress.

financial goals

a specific target for what you want to achieve with your money, serving as a roadmap for your financial future. These

financial planning

Setting goals and creating a plan to manage money for both short-term needs and long-term security.

SMART goal

A goal that is Specific, Measurable, Achievable, Realistic, and Time-bound. 

long-term goal

A goal you want to reach in the distant future (longer than a year), like graduating college or buying a house.

short-term goal

A goal you want to reach soon (within a year), like saving for a new phone.

need

Something essential for survival, like food, water, housing, or clothing.

want

Something you would like to have but can live without, like video games or designer clothes.

influences

Factors such as family, friends, culture, or media that affect your decisions. 

advertising

A way businesses try to persuade people to buy their products or services through TV, internet, billboards, etc.

opportunity cost

The value of the next best thing you give up when making a choice.