Money Management
A written plan for how you will spend and save your money each month.
What is a budget?
A plastic card that lets you buy things now, but you have to pay the bill later.
What is a credit card?
The people you hire and pay to work for your business.
What are employees?
Purchasing one of these gives you a small slice of ownership in a publicly traded company.
What is a stock?
The fund you allocate money to just in case something bad happens.
What is an emergency fund?
Money you borrow from a bank that you promise to pay back.
What is a loan?
The money a business gets to keep after paying for all its supplies and workers.
What is profit?
This famous street in New York City is known all over the world as the center of the stock market.
What is Wall Street?
This type of bank account is primarily used for everyday transactions and paying bills.
A loan specifically used to purchase real estate or a home.
What is a mortgage?
Paying for commercials or posters to get people to buy your stuff.
What is advertising?
The smart strategy of buying lots of different things instead of putting all your money into just one company.
What is diversification?
A safe place in a bank to store your money, which pays you a tiny bit of interest for leaving it there.
A grade or number between (usually between 300 and 850) that tells banks how good you are at paying back your debts.
What is a credit score?
Things a company owns that hold value, such as cash, equipment, inventory, or real estate.
What are assets?
The financial knock on effect where your money makes extra money, and then that extra money starts making even more extra money without you touching it.
What is compound interest?
The income you actually take home in your paycheck after taxes and deductions are removed.
What is net income?
The cost of borrowing money, usually expressed as an Annual Percentage Rate (APR).
What is interest rate?
A person who gives your business money to help it get started, hoping they will get even more money back if the business does well.
What is an investor?
An investment that is essentially an I.O.U. or loan you make to a company or government, which pays you interest over time.
What is a bond?