Time is Money
The total cost of borrowing money over a year, including fees and interest, is called this.
What is the annual percentage rate (APR)?
This form, provided by your employer, summarizes your wages and taxes withheld each year.
What is a W-2?
This rule states that you should prioritize saving money before spending it.
What is 'pay yourself first'?
Unlike banks, this type of financial institution is member-owned and often provides better savings interest rates.
What is a credit union?
This is how long something stays on your credit report if you miss a payment.
What are 7 years?
Investing in just one company’s stock violates this key investment principle.
What is diversification?
If a savings account earns 8% interest annually, use the Rule of 72 to estimate how long it will take for the money to double.
What is 9 years?
These two payroll deductions are required under FICA and help fund retirement and healthcare programs.
What are Social Security and Medicare taxes?
A budget is considered this when your income and expenses are equal.
What is balanced?
This account offers both check-writing privileges and interest earnings but usually requires a higher balance.
What is a money market account?
This federal law ensures that lenders disclose all costs and fees upfront, so you don’t sign a loan agreement blindly.
What is the Truth in Lending Act (TILA)?
This financial term refers to an investment’s ability to be quickly converted into cash.
What is liquidity?
This financial principle states that money is worth more today than the same amount in the future.
What is the time value of money?
A taxation system where those who earn more pay a higher percentage of their income is called this.
What is a progressive tax?
These are the three main types of expenses in a budget.',
What are fixed, variable, and periodic expenses?
If you want guaranteed interest earnings and are willing to lock up your money for a set period, you should invest in this type of account.
What is a certificate of deposit (CD)?
Your credit score drops significantly if you do either of these two things.
What are missing a payment and maxing out your Credit Card?
The NASDAQ and NYSE are examples of this kind of financial marketplace.
What are stock exchanges?
This is what happens to borrowing and inflation when the Federal Reserve raises interest rates.
What is borrowing decreases and inflation drops?
You won the lottery! These are the two types of taxes might you owe.
What are income tax and capital gains tax?
This term describes the extra money left after paying for necessities like housing and food.
What is discretionary income?
This is the federal agency that insures credit union deposits up to $250,000.
What is the NCUA (National Credit Union Share Insurance Fund )?
This legal action allows a lender to seize and sell a property when a borrower defaults on their mortgage.
What is foreclosure?
An investor who purchases shares of a company is called this.
What is a shareholder?
Unlike simple interest, this type of interest builds on itself by applying interest to both the principal and accumulated interest.
What is compound interest?
This tax allows the government to take a portion of your wealth after you pass away, but only if it exceeds a multi-million-dollar threshold.
What is the estate tax?
This is the first step you should take if your budget shows a deficit.
What is reducing discretionary spending?
If you suspect fraud or an error in a check you wrote, you can request this to prevent the check from being processed.
What is a stop payment order?
This type of credit allows continuous borrowing and repayment, like with a credit card.
What is revolving credit?
The S&P 500 and Dow Jones Industrial Average are examples of this kind of financial measurement tool.
What are stock market indecis?