Financial Literacy Unit 1 : Intro to Finanacial Literacy

Flashcards on Financial Literacy

Financial Health

The state of a person's financial situation. Excellent financial health is crucial for overall well-being.

Financial Literacy

The intellectual grasp of financial ideas and abilities such as budgeting, investing, borrowing, taxation, and personal financial planning.

Budget

A summary of your earnings and expenses for a specific time period, usually one month.

Savings

Setting aside a percentage of one's income for future usage, allowing for financial safety and security.

Investing

Accumulating and expanding wealth to live a secure and happy life.

Tax Planning

A legal technique of lowering tax payments in any given fiscal year, utilizing government tax exemptions, deductions, and benefits.

Credit Score

Assesses a person's capacity to repay a debt, representing their creditworthiness numerically.

Income

The money that a household receives in the form of earnings from various sources.

Expenditure

The money spent from wages to obtain various products to suit our needs.

Debt Management

Borrowed money, understanding its principles, distinguishing between good and bad debt, and managing it effectively.

Financial Education

Knowing the facts about money and taking the necessary steps to obtain desired financial outcomes.

Numerical Ability

Having the confidence and skill to add, subtract, multiply, divide, and use decimals, fractions, and percentages.

Financial Tools

Programmes that calculate, evaluate, and analyse financial variables such as return and risk.

Financial Etiquette

A set of anticipated or obligatory behaviours in order to become financially literate.

Communication Ability

Being able to communicate financial information through effective speaking, writing, and presentation skills.