Banking Basics
Fees that could be on a basic savings or checking account
Overdraft
Monthly maintenance
ATM
Plan for dividing your income between spending and saving options
Budget
Types of expenses such as rent and college loan payments
Fixed Expense
Stock
These are personal beliefs that drive decision making and differ from person to person
Values/Morals/Personality
Considered the most liquid asset
Cash
Difference between Gross and Net pay on your paychecks
Gross Pay - ______ = Net Pay
Payroll deductions (taxes, health insurance etc.)
This amount of dollars is left over when your gross income of $1,000 has a total of $250 in deductions
$750
The amount earned on an investment, such as interest
Return
Typical number of weeks worked for a paycheck
2 Weeks
While income measures what you earn, this metric—calculated by subtracting all liabilities from total assets—is considered the most accurate measure of a person's actual wealth
Net Worth
Factors that closely influence your future income-earning potential
Education and training
DAILY DOUBLE!!
This popular budgeting guideline suggests allocating your income to needs, wants, and savings or debt repayment.
50/30/20 rule
The earlier you start investing, _____
the more time your money has to grow
Your score in this area may affect getting a job, renting an apartment or car insurance rates
Credit Score
Federal agency insures bank deposits up to $250k
Federal Deposit Insurance Corporation (FDIC)
This comprehensive document outlines your income, assets, liabilities, and future financial goals, serving as a roadmap for your financial life.
Financial Plan
This many months of expenses should ideally be in your emergency fund
3-6 months
Doing this to your portfolio will help mitigate risk
Diversify
DAILY DOUBLE!!
This approach made famous or infamous by Rick Singer, refers to the illegal method of bribing athletic coaches to get students admitted to elite universities as "fake" recruits.
Side Door
This type of savings account has a penalty for early withdrawal of your money, Date of maturity, and is protected up to 250K
Certificate of Deposit (CD)
The value of the next best alternative that you give up when you make a financial choice.
Opportunity Cost
Your take home pay after deductions
Net Income
Examples of these would be the NYSE, NASDAQ or OTC
Stock Exchanges
This type of financial institution is only for members of a specific group, like a school district
Credit Union