Financial Literacy and Institutions

These flashcards cover key concepts in financial literacy, focusing on money management, savings products, and financial institutions.

Time Value of Money

The concept that money available now is worth more than the same amount in the future due to its potential earning capacity.

SMART Financial Goal

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

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and equity at a specific point in time.

Cash Flow Statement

A financial statement that shows the cash inflows and outflows for a certain period.

Budget

A plan that outlines expected income and expenditures over a specific time period.

Emergency Fund

Savings set aside for unforeseen expenses, often referred to as a 'Rainy Day Fund.'

Liquidity

The availability of liquid assets to a market or company, or how quickly an asset can be converted into cash.

Certificates of Deposit (CDs)

A savings account with a fixed interest rate and fixed date of withdrawal, with potential penalties for early withdrawal.

Money Market Account

A type of savings account that typically requires a higher minimum balance and offers higher interest rates.

FDIC Insurance

Federal Deposit Insurance Corporation insurance that protects deposits in member banks up to $250,000.