Basics of Financial Literacy

Taxes

Required payments to a government for the use of services

Credit

the ability of a customer to obtain goods or services before payment, based on a history of paying debts on time, and the trust that payment will be made in the future (legally obligated)

Credit Cards

A way to access money based on the trust that payment will be made in the future (Legally obligated)

Debit Cards

Plastic cards used to pay for purchases with funds you have in a bank account.

Interest

A sum paid or charged for the use of money or for borrowing money

Loans

amounts of money borrowed which will accumulate interest

Stock Market

a system for buying and selling stocks in corporations

Stocks

shares of ownership in a company

Debt

Money owed

Budget

A plan for making and spending money

Supply & Demand

an economic concept that states that the price of a good rises and falls depending on how many people want it (demand) and depending on how much of the good is available (supply)

Recession

A slowdown in a nation's economy (the amount of money a nation makes)

Investment

An asset or item acquired with the goal of generating income or appreciation.

Liability

Something disadvantageous - will cost you money

Assest

Anything of value that is owned and generates money

Insurance

protection against financial loss

Rent

A monthly fee charged to use or live in property or land owned by someone else

Mortgage

a specific type of long term loan that is used to buy real estate (a home)