Lesson 5
What is an ETF often called because it holds many different things at once?
A Basket
This term describes a general rise in prices, meaning your dollar buys fewer things than it used to
Inflation
This is the "financial grade" or report card adults have that tells banks if they are "risky" or "safe" to lend money to.
Credit Score
This is the total amount of money you earn before any taxes are taken out
Gross Pay
What does "POV" stand for
Point of View
What is it called when you own many different companies to lower your risk?
Diversification
This is the extra "fee" or cost a person must pay to a bank in exchange for borrowing money
Interest
In the 50-30-20 budgeting rule, items like video games, movie tickets, and designer clothes fall into this "30%" category
Wants
This is your actual "take-home pay," or the money you really get to spend after taxes
Net Pay
In The Hunger Games, what is Katniss Everdeen's home district?
District 12
What is the low-risk way of "letting your money work for you"?
Passive investing
If Joe borrows $10 from a bank at a 10% interest rate, this is the total amount of money he must pay back.
$11
Making up 35% of your "financial grade," this is the most important thing banks look at to see if you pay your bills by the due date
Payment History
Taxes are used by the government to pay for these important things, like clean water and housing
Infrastructure
Which artist released the hit song "Birds of a Feather"?
Billie Eilish
When are you allowed to buy or sell an ETF on the stock market?
Any time throughout the day
When interest rates are very high, people and companies usually do this with their money because borrowing is expensive.
Spend Less
This is the range of numbers that most adult credit scores fall between, where a higher number is a better grade
300 to 850
Taxes don't just pay for roads; they also fund this major government system that helps manage the nation's money
Federal Reserve
Which country won the 2022 FIFA Men's World Cup?
Argentina
How much money did U.S. investors have in ETFs by the year 2021? (Hint think Trillions)
4 Trillion
To keep the economy healthy, most central banks try to keep the yearly inflation rate at this specific percentage.
2-3%
This happens when you buy a $400 "Want" on credit and end up paying much more than the original price because you pay it off slowly with high fees.
Interest Trap
This is the "surprised" feeling workers get when they see how much smaller their real paycheck is compared to their total salary
Paycheck Shock
Which planet has the most moons in our solar system?
Saturn