Types of Bank Accounts
A bank account typically used for everyday purchases or short term goals, considered very liquid because you have easy access to the cash and has a very low interest rate.
Checking Account
In 2008, there was a severe financial crisis caused mainly by risky subprime mortgages leading to mass foreclosures, this is commonly known as
The 2008 Housing Crash
This term refers to how easily and quickly you can turn an asset into cash.
Liquidity
What is a credit score?
a score ranging from 300-850 that shows how reliable you are to lenders
How many times do you fill out the FAFSA a year?
1
A basic type of savings account that's offered by banks and credit unions, that allows you to deposit money, earn interest, and withdraw funds. Typically has the lowest interest rate and is considered low risk.
Savings Account/Traditional Savings Account
What currency do they use in the UK?
They use a British pound
This is the percentage charged for borrowing money or earned on savings, and is usually known as the "cost" of using someone else's money or a reward for lending your own money.
Interest Rate
Whats the range of months you should typically have saved in an emergency fund?
3-6 months
What is another way to pay for college other than loans and grants?
Scholarships/ applying for scholarships
Type of savings account that earns a higher than average interest rate to allow your money to grow faster
High-Yield Savings Account
How much does the FDIC insure per person and per bank in the event of bank failure?
What is $250,000?
What does APY stand for?
Annual Percentage Yield
Can poor credit affect my future?
Yes
What's the first step when creating a budget?
Write down all your expenses and income
A specific type of savings account that allows you to deposit money that earns interest for a set time period with the intent that the account will not be accessed until it reaches maturity. When maturity is reached you can cash it in and get back the principal, plus the interest you earned.
Certificate of Deposit (CDs)
What is the major stock exchange in the United States?
New York Stock Exchange
What does FDIC stand for?
Federal Deposit Insurance Corporation
Whats the typical interest rate on a traditional savings account?
1%
What is the main difference between a grant and a loan either federal or private?
A grant does not need to be repaid where as a loan does
This account is a cross between a checking and a savings account that limits you to 6 checks in a 30 day window. It has opportunity to have high interest rates depending on the balance and usually requires a minimum balance.
Money Market Account
How is a 401k taxed vs a Roth IRA?
This term refers to the original amount of money borrowed in a loan or invested, not including any interest or fees.
Principal
What percentage of my paycheck is a good general rule to put towards my savings?
20%
50/20/30 rule
50% for needs, 30% for wants and 20% for savings and debt
What is a 529 account?
A kids college savings account usually started by a parent or guardian