Financial Literacy Jeopardy

This is the total amount of money you earn before any taxes or deductions are taken out.

What is gross pay?

This is the amount of money you actually take home after taxes and deductions are subtracted from your paycheck.

What is net pay?

This is the lowest hourly amount an employer can legally pay most workers, set by federal and state law.

What is minimum wage?

Unlike an hourly wage, this type of pay is a fixed yearly amount that does not change based on the number of hours worked in a given week.

What is a salary?

Sent by an employer each January, this form reports how much an employee earned and how much tax was withheld the previous year.

What is a W-2?

This financial plan tracks income and expenses to help a person decide how to spend and save money.

What is a budget?

This type of expense, such as rent or a car payment, stays roughly the same amount every month.

What is a fixed expense?

This type of expense, such as groceries or gasoline, changes in amount from month to month.

What is a variable expense?

This popular budgeting rule divides after-tax income into 50 percent needs, 30 percent wants, and 20 percent for saving and debt repayment.

What is the 50/30/20 rule?

This term describes what happens when a person spends more money than they take in during a given period.

What is overspending?

This is the original sum of money deposited or borrowed, before any interest is added.

What is the principal?

This type of bank account typically pays interest on the money deposited while still allowing the owner to withdraw it.

What is a savings account?

This is the percentage a bank pays you for keeping your money deposited, or charges you for borrowing money.

What is an interest rate?

Unlike compound interest, this simpler kind is calculated only on the original amount deposited or borrowed, never on interest already earned.

What is simple interest?

This term describes a reserve of cash, often three to six months of expenses, set aside for unexpected costs.

What is an emergency fund?

This three-digit number, ranging roughly from 300 to 850, summarizes how reliably a person has repaid borrowed money in the past.

What is a credit score?

This plastic card lets a person borrow money from a bank up to a limit, which must be paid back, often with interest if not paid in full.

What is a credit card?

This is the amount of money still owed on a loan or credit card.

What is debt?

This is the smallest amount a credit card company requires a cardholder to pay each billing cycle to avoid a penalty.

What is the minimum payment?

This term describes the added cost, expressed as a yearly percentage, that a borrower pays for the privilege of borrowing money.

What is the annual percentage rate (APR)?

This type of bank account is used for everyday spending and usually pays little or no interest.

What is a checking account?

This plastic card, linked directly to a checking account, lets a person spend money they already have instead of borrowing.

What is a debit card?

This machine lets bank customers withdraw cash, deposit checks, and check balances without going inside a branch.

What is an ATM?

This federal agency insures deposits at most banks up to $250,000 per depositor, protecting savers if a bank fails.

What is the FDIC?

This process involves matching your own transaction records against a bank statement to make sure the two agree.

What is reconciling?

This category of spending includes things a person must have to survive, such as food, shelter, and clothing.

What are needs?

This category of spending includes things that are nice to have but are not required for survival, such as video games or concert tickets.

What are wants?

This basic human need refers to having a safe place to live, such as an apartment or house.

What is shelter?

This term describes spending on wants rather than needs, using money left over after essential bills are paid.

What is discretionary spending?

This economic term describes the value of the next best option a person gives up when choosing to buy one thing instead of another.

What is opportunity cost?