banking
This type of account typically earns interest and allows limited withdrawals.
This concept refers to the tendency to continue an endeavor once an investment in money or effort has been made, even when it’s no longer rational
the sunk cost fallacy
this three-digit number, usually ranging from 300 to 850, reflects a persons creditworthiness
credit score
This type of insurance helps cover medical expenses for you and your family.
What is health insurance?
This term refers to the act of putting money into financial schemes, shares, or property with the expectation of achieving a profit.
investing
This service allows you to automatically deposit your paycheck into your bank account?
What is a direct deposit?
this effect describes how people react differently depending on whether choices are presented as gain or losses.
farming effect
this type of credit allows you to borrow money up to a certain limit and pay it back over time, like a credit card
revolving credit
This coverage pays for damage to your car in an accident, regardless of who is at fault.
What is collision coverage?
This type of investment represents ownership in a company and can provide dividends.
stock
This fee is charged when you spend more money than you have in your checking account.
What is an overdraft fee?
this bias leads people to prefer avoiding losses over acquiring equivalent gains
loss aversion
this organization complies credit reports and assigns credit scores. Examples include Equifax, Experian, and TransUnion
credit bureau
This type of insurance protects your home and belongings from risks like fire or theft.
What is homeowners insurance?
This type of investment is essentially a loan you give to a company or government, which pays you interest over time.
bond
This three-digit number represents your creditworthiness to lenders.
What is a credit score?
this term describes how small automatic changes, like enrolling people by default in a retirement plan, can significantly influence behavior
nudge
paying this late can negatively affect your credit score
credit card bill or loan payment
This type of insurance provides financial support to your beneficiaries after your death.
What is life insurance?
This principle states that higher potential returns on investment usually come with higher risk.
the risk return trade off
This type of loan is secured by collateral, such as a house or car.
What is a secured loan?
this economic theory suggest that people often make irrational decisions due to cognitive limitations and emotional influences
bounded rationality
this term refers to the amount of credit you are using compared to your credit limit.
credit utilization ratio
This is the amount you pay out of pocket before your insurance starts to cover costs.
this type of investment pool collects money from many investors to buy a diversified portfolio of stocks and bonds
a mutual fund