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Financial Literacy 5
Vocabulary Grade 5
Term | Definition |
---|---|
Budget | The amount of money you will spend each month on savings, utilities, rent, and other payments. It allows people to keep track of their spending and not overspend |
Checking Account | A checking account is a service provided by financial institutions (banks, savings and loans, credit unions, etc.) which allows individuals and businesses to deposit money and withdraw funds from a federally-protected account using a check |
Credit Card | A plastic card having a magnetic strip, issued by a bank or business authorizing the holder to buy goods or services on credit |
Credit Report | A credit report contains information about your credit - and some bill repayment history |
Credit Score | A credit score is a numerical expression based on a level analysis of a person's credit files, to represent the creditworthiness of that person |
Credit Worthy | You have established good credit by paying all of your bills on time and you don’t use credit cards regularly |
Debit Card | A bankcard used to make an electronic withdrawal from funds on deposit in a bank, as in purchasing goods or obtaining cash advances |
Deductions | Amounts that are taken out of your paycheck |
Disposable Income | Money you have left to invest or spend after you’ve paid all of your expenses each month |
Electronic Payments | Electronic payments are payments that are made directly to the person you’re paying a bill to from your bank accounts using security features over the Internet to process the transactions. |
Expenses | Bills you must pay each month |
Gross Income | The amount of money you actually make without deductions |
Income Tax | Money taken out of everyone’s paycheck to pay for schools, roads and etc. |
Net Income | The amount of money you actually receive after deductions on your paycheck |
Obligations | Bills you must pay every month |
Over-Extended | Your bills add up to more than your monthly net income |
Max | Spending the entire limit of credit that you are extended |
Sales Tax | Tax you pay on items that you purchase at the store |