Terms
Something you own
Asset
This machine lets you withdraw cash using your bank card.
An ATM
You buy a share for $50 and sell it for $70 dollars, ignoring fees and taxes, how much profit do you make?
$20
When you a credit card, are you spending your own bank balance or borrowing money?
Borrowing money
A plan for how you’ll spend and save your money each month
A budget
What you owe
Liability
This type of bank account is mainly used for everyday spending and paying bills
A checking account
True of False: Buying a stock guarantees you’ll make money.
False
This number helps lenders judge how likely you are to repay borrowed money
A credit score
Money saved specifically for unexpected costs, like a broken phone or an urgent car repair.
An emergency fund
A piece of ownership in a company
Stock
This type of account is designed for setting money aside and usually earns interest
A Savings Account
Instead of putting all your money into one company, you spread it across different investments.
Diversification
Hurt it
You have $200, spend $60 on groceries, on spend $90 on textbooks. How much is left
$50
A loan that you make to a company or government
Bond
Your account has $40, but a. $60 purchase goes through, Your account is now Negative, what is this called?
An overdraft / overdrawing your account
Some companies share part of their profit with stockholders through these payments.
Dividends
Your credit card limit is $1,000 and your balance $250. How much available credit do you have left?
$750
Which generally needs to be repaid: A scholarship or a student loan?
A student loan
The cost of borrowing money
Interest
Your paycheck automatically goes into your bank account instead of arriving as a paper check
Direct Deposit
Your investment earns money, and then those earnings start earning money too.
Compounding / Compound growth
You agree to be a co-signer on your friend’s loan. If your friend doesn’t pay, can you be held responsible?
Yes
you spend $15 on food delivery four times a week. How much do you spend over exactly four weeks?
$240