Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Unit 4 - Credit
Financial Literacy
| Question | Answer |
|---|---|
| What is one benefit of borrowing money from a friend or family member instead of from the bank? | Friends and family will typically work with you to set up a repayment plan you can afford |
| Pros of Borrowing Money from Family and Friends | 1. Flexible Options - Friends and family will most likely want to help you achieve your goals, so they will work with you in setting up a repayment plan that you can keep up with. 2. Lower Interest Rates - a lower interest rate or pay no interest at all. |
| Cons of Borrowing Money from Family and Friends | 3. Not a Priority - no immediate consequences if you don’t. 4. Judgment - Borrowing money usually means you do not have enough money to afford something. If you borrow money from a family member or friend they may think you were irresponsible |
| Debit Card | Money is automatically, taken out of a checking account, Acts as cash, convenient |
| Credit Card | Money is borrowed and repaid at a later date, Great for emergency situations, You may pay interest and late fees, May result in debt, Acts as cash, convenient |
| Credit cards are a form of a | loan. |
| If you do not pay your credit card in full you may be charged | interest. |
| A lower interest rate means you pay ________ ( more or less) money. A higher interest rate means you pay __________ (more or less) money. | Less, More |
| Interest | what you pay for using someone else's money |
| Lower interest rate means | pay less money |
| Higher interest rate means | pay more money |
| Where can people get a loan? | Banks and credit unions offer loans |
| Which age group tends to have the most credit card debt? | Middle-aged people |
| What is the best way to avoid going into large debt on your credit card? | Pay your full balance every month |
| What affects your credit score? | Payment history, mix of credit types, length of credit |
| 5 factors that affect credit score | Payment history Capacity Length of Credit New Credit Mix of Credit |
| What does the principal of a loan mean? | The total amount you borrowed |
Created by:
jeff.fishbach
Popular Finance sets