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Financial Literacy Key Terms

Name____________________________________  Class_________________     Date_____________
Across
The price of using someone else’s money. Credit card holders use the credit issuer’s money to make purchases. If the cardholder does not pay the full statement amount by the due date, the credit card companies add interest to the balance the cardholder owes.
A service provided by financial institutions to generally approve and pay overdraft transactions when the account holder does not have enough funds to cover the transactions in return for a fee.
The ability of a consumer to obtain goods and services before payment, based on an agreement to pay later. Using a credit card is one form of credit and choosing and using credit cards are important components of personal finance.
A tool in which an account holder lists his or her initial balance in an account and then records all debits and credits in order to maintain an accurate record of account activity and an accurate balance.
An exchange, promise or agreement between two parties that is enforceable by law. Under the terms of the contract, a car buyer agrees to pay the amount financed, at an agreed upon interest rate, for the length of the contract.
An individual investor’s ability to accept loss of some or all of the money they have invested. A person’s risk tolerance is based on a number of factors including age, financial stability, amount of time before the invested funds are needed for other purposes, etc.
The amount received after all deductions have been subtracted. Some of these deductions are social security tax, Medicare tax, income tax and maybe insurance premiums.
Down
an investment strategy in which you spread your investment dollars among different markets, sectors, industries, and securities. The goal of the strategy is to protect the value of your overall portfolio in case a single security or market sector takes a serious downturn and drops in price.
The amount you are paid before all the deductions are subtracted.
Available at banks and credit unions. This is an account which allows owners to deposit funds. This means funds are added to the account. You, as the account owner, can also withdraw or remove funds from the account. You can withdraw by electronic transfer, check, ATM card or check.
A group of stocks, often in one industry. The performance of any single stock in a sector can be measured against the performance of the group. Pharmaceutical companies, for example, are part of the health care sector.
Represents an agreement between a lender – the institution issuing the card – and the cardholder. It is a convenient form of borrowing with a revolving line of credit. This means it can be used repeatedly to buy products or services, up to a specific dollar amount. The credit card company determines this dollar amount based on a credit holder’s credit history.
A group of companies producing similar products or services.
Income not spent on current consumption or taxes. Saving involves giving up some current consumption for future consumption.