Econ financial literacy

  1. Cash Inflows

  • Income from your job, investments, and other sources

  1. Cash Outflows

  • Expenses, or items for which you must spend money

  1. Assets

  • Money and items of value that you own

  1. Liabilities

  • Debts that you owe  

  1. Net Worth

  • The difference between your assets and your liabilities 

  1. Debt-to-Income Ratio

  • Compares how much you earn each month to how much you owe each month 

  1. Budget

  • A spending and saving plan based on expected income and expenses

  1. Variances

  • The differences between planned amounts and actual amounts 

  1. Variable expenses

  • Costs that go up and down each month 

  1. Fixed expenses

  • Costs that do not change each month 

  1. FInancial goals

  • Plans for how you pay for your personal goals

  1. Financial Plan

  • A plan listing personal and financial goals along with steps and a timeline for reaching them 

  1. Credit

  • The ability to borrow money and pay it back later

  1. Credit Card

  • Card linked to a credit account that can be used to make purchases

  1. Revolving Credit

  • An account on which the account holder can charge repeatedly up to a maximum limit 

  1. Store Credit

  • A credit account that allows you to charge items or services only at that store or with that merchant

  1. Charge Card

  • A form of credit card where the balance must be paid in full each month

  1. Installment Credit

  • Credit used to finance a single high-priced item through a series of equal payments made over a set period of time 

  1. Consumer Loan

  • A direct loan of cash made to a consumer at a fixed interest rate for a set period of time


  1. Collateral

  • Property used as security for a loan 

  1. Line of Credit

  • A preapproved loan amount that a debtor can borrow against, pay back, and borrow again as needed

  1. Fixed Interest Rate

  • Interest rate that does not change from month to month

  1. Variable Interest Rate

  • INterest rates a lender can change at any time without notice

  1. Minimum Payment

  • The amount you are required to pay each month on a credit account

  1. Penalty

  • A fee charged for violating a term of the credit agreement

  1. Cancellation Fee

  • A penalty for closing your account prior to a stated period

  1. Disputing a Charge

  • The process of informing a credit company of an error on your bill 

  1. Credit Card Fraud

  • Intentionally using someone’s credit account to steal money or goods

  1. Loan Modification

  • A new loan arrangement that allows you to make reduced payments, usually on a temporary basis

  1. Credit Delinquency

  • Failure to pay debts as required by agreement or by law 

  1. Garnishment 

  • A legal process that allows parth of an employee’s paycheck to be withheld for payment of a debt

  1. Repossession

  • The act of taking an asset used as collateral and selling it to pay the debt

  1. Bankruptcy

  • A legal procedure to relieve a person of excessive debt

  1. Chapter 7 Bankruptcy

  • The forfeiture of an individual's assets in exchange for the discharge of debts 

  1. Chapter 11 Bankruptcy

  • Reorganization of debt as decided by the court so that business can remain viable

  1. Chapter 13 Bankruptcy

  • A repayment plan for debt individuals