Liabilities
A liability is something you own, and adds money to your pocket
True or False?
False.
A liability is generally something you owe, or have a debt on.
An asset is something you owe, and takes money away from your pockets
True or False?
False.
An asset is generally something that you own, and adds money to your pockets. There is an exception to this: depreciating assets.
A budget helps to break the poverty cycle
True or False?
True.
Having a budget lets you know where your money is going per pay period or month, and allows you to consistently save rather than living paycheck to paycheck outside your means.
You should diversify your investment portfolio.
True or False?
True.
Diversifying your investment portfolio reduces risk and helps to build long-term wealth.
We have mapped the surface of Mars more than we have our own ocean floor.
True or False?
True!
80-95% of our oceans remain unexplored and unmapped, in comparison to the surface of Mars, which is almost 100% mapped.
I am the sum of money you owe.
What am I?
I am your Debt.
I come in many forms. The most common are:
Loans,
Credit card balances, and
Medical bills not covered by insurance
I am an asset that loses value over time.
What am I?
I am a Depreciating Asset.
I lower your net worth over time, but still add some value to it because I can be sold.
I am the money you take home before taxes.
What am I?
I am Gross Income
I am a risky asset with the potential for high reward, and I make up the ownership of part of a company. I am sold on Wall Street.
What am I?
A stock.
I am a food that never spoils, yet I have no preservatives and am found naturally. There is a widespread misunderstanding about me that the FDA classifies me as meat.
What am I?
I am honey!
I am the loan you take out on a home. I am typically paid back over 15 or 30 years.
What am I?
I am a Mortgage.
I typically have a down payment (minimum 3%), and have closing costs that are typically 2-5% of the value of your home.
I am a shiny, hard, appreciating asset that has a variable market price, but I am not real estate.
What am I?
Diamonds, gold, platinum, and silver are examples of me. You can buy me as an investment!
I am the total sum of your assets and your liabilities.
What am I?
I am your Net Worth. I may also be called Equity.
I am the difference between the value of your home and your mortgage.
What am I?
I am Home Equity.
I can be leveraged in cases of emergency or other major expenses, for debt consolidation, and for home renovations.
Who made Mt. Rushmore?
Gutzon Borglum and his son Lincoln Borglum. Construction started in 1927 and it was completed in 1941.
I am debt that will eventually raise your net worth.
What am I?
I am Good Debt.
Examples of me are:
Mortgages,
Student Loans, and
Small Business Loans
I am an item that appreciates in value over time.
What am I?
I am an Appreciating Asset.
Examples of me are:
real estate,
precious metals (gold, platinum, etc) or rare collectible items, and
Stocks
I am the money you take home after taxes.
What am I?
I am your Net Income.
I am made up of the money you get in your paychecks, and I represent actual profits. Use me wisely!
I am something you buy from a company or the U.S. government to lend them money for a set amount of time.
What am I?
I am a U.S. Savings Bond.
I typically appreciate in value and have my own interest rate. It takes around 30 years for me to mature, but I can be redeemed after 1-5 years with a penalty. After that period, I may be redeemed with no penalty.
I am the human body system that controls the exchange of gasses that happens during breathing.
What am I?
I am the Pulmonary System!
Are depreciating assets also liabilities?
Why or why not?
No, a depreciating asset is not a liability.
This is because despite lowering your net worth over time, a depreciating asset is something that you own (not owe) and can be sold.
Are general items like textbooks, headphones, video games, etc. considered assets?
Why or why not?
Yes!
General items are considered assets. Your assets are your property as a whole, and add value to your net value even if that value is not significant.
What 3 things are typically needed before you are approved for your first rental home?
1. A credit check (Do you have a credit score? Is it a decent one?)
2. Proof of income (2.5-3x rent)
3. A security deposit
Generally, landlords will also run a background check on their applicants!
What is an ETF?
It is an Exchange-Traded Fund.
They offer immediate diversification, and are essentially a collection of micro-stocks. They are less risky than traditional stocks, offering consistent returns while still remaining movable/liquid.
Clownfish cannot be stung by their anemone.
True of False?
False!
Clownfish are actually frequently stung by their anemone, but their biology makes it so they are more resistant to the toxin.