Junior Achievement Financial Literacy Challenge

When you use a credit card, you have the option to buy now and pay for your purchases at a later date. Unlike debit cards or cash, credit cards allow you to make purchases on credit, which means you can use the card to pay for goods and services immediately and then repay the amount owed to the credit card company at a later time. This flexibility in payment is one of the key features of credit cards and is often referred to as "buy now, pay later."

When you use a debit card, the payment is deducted directly from your bank account at the time of the purchase. Unlike a credit card, which allows you to make a purchase and pay for it later, a debit card requires immediate payment. Therefore, the correct answer is "Buy now, pay now."

All of the above. Employees, self-employed people, and employers all contribute money into Social Security. Employees and employers pay a portion of their wages into the program, while self-employed individuals pay both the employee and employer portions themselves. These contributions go towards funding the Social Security program, which provides benefits to retired, disabled, and surviving individuals and their families.

The correct answer is "All of the above". This is because taxes are paid by anyone who has a job, as they are required to pay income taxes. Additionally, anyone who purchases items pays sales taxes, and anyone who owns property pays property taxes. Therefore, all three options mentioned in the question are correct, as they encompass the different ways in which individuals pay taxes.

The three main types of taxes are income tax, sales tax, and property tax. Income tax is a tax on the income individuals and businesses earn. Sales tax is a tax on the purchase of goods and services. Property tax is a tax on the value of real estate and other property. These three types of taxes are commonly imposed by governments to generate revenue and fund public services and programs.

When a financial institution lends money, they charge borrowers interest. Interest is the additional amount of money that borrowers have to pay back on top of the original loan amount. This is how financial institutions make money from lending. By charging interest, they can earn a profit and cover the costs and risks associated with lending money.

Taxes serve multiple purposes, including improving roads, supporting the government, and paying retirement benefits. Taxes are a crucial source of revenue for the government, enabling them to fund public infrastructure projects such as road improvements. Additionally, taxes are used to support various government programs and services, ensuring the smooth functioning of the country. Lastly, a portion of taxes is allocated towards retirement benefits, providing financial assistance to retired individuals. Therefore, the correct answer is "All of the above."

A budget is a record of spending or probable expenditures and income for a given period of time. It helps individuals or organizations plan and manage their finances by outlining their expected income and expenses. By creating a budget, one can track their spending, allocate funds to different categories, and make informed financial decisions. Therefore, a budget is the correct answer for this question.

Regular expenses that do not vary in cost from month to month are called fixed expenses. These expenses, such as rent and loan payments, remain constant and are not influenced by changes in other factors like income or usage. Fixed expenses are typically necessary and recurring, making them an essential part of budgeting and financial planning.

Gross monthly income refers to the total amount of income earned in a month before any deductions or taxes are taken out. It represents the total earnings before any expenses or deductions are subtracted, providing a clear picture of the individual's income before any financial obligations are met. This term is commonly used to calculate taxes, loans, and other financial matters, as it gives a comprehensive understanding of the individual's earning capacity.

Financial trust extended to a person by a lender is called "credit". When a lender extends credit to someone, they are providing them with funds or resources that the person can use immediately, with the expectation that the person will repay the lender in the future. Credit allows individuals and businesses to make purchases or investments that they may not have the immediate funds for, and it is a common practice in the financial industry.

Federal, Social Security, and Medicare are indeed types of taxes. Federal taxes are imposed by the federal government on individuals and businesses. Social Security tax is a payroll tax that funds the Social Security program, which provides benefits to retired and disabled workers and their dependents. Medicare tax is also a payroll tax that funds the Medicare program, which provides healthcare benefits to individuals aged 65 and older. Therefore, the statement "Federal, Social Security, and Medicare are all types of taxes" is true.

The correct answer is "A piece of the corporate pie." This explanation means that a stock represents ownership in a company. When someone owns a stock, they own a portion of that company and have a claim on its assets and earnings. This ownership entitles the stockholder to voting rights and a share in the company's profits, making it comparable to a slice of the corporate pie.

The three variables that affect saving money are the amount of money saved, the interest rate earned on the savings, and the length of time the money is saved for. The amount of money saved determines the initial savings, the interest rate determines the growth of the savings over time, and the length of time determines the overall accumulation of savings. These three factors work together to determine the final amount of money saved.

Social Security is a social insurance system that provides financial support to individuals who are retired, disabled, or unemployed. It is a government program that aims to ensure economic security and stability for individuals and families. It is not a private insurance system and it is not solely based on the amount of money someone has.

Housing is the area of a typical family budget where people spend most of their money. This includes expenses such as rent or mortgage payments, property taxes, home insurance, and maintenance costs. Housing is a basic necessity and often represents a significant portion of a family's monthly expenses.

The Net column on a stick report tells you how much the value of the stock has changed from the previous day. This column calculates the difference between the current day's value and the previous day's value, giving an indication of the stock's performance and whether it has increased or decreased in value.