Types of Accounts
This account does not earn any interest, but you have easy access to your money through check writing and a debit card
What is a checking account?
This investment represents ownership in a company.
What is a stock?
You should have this much worth of your expenses saved up in an emergency fund
What is 3-6 Months?
This economic concept reduces the purchasing power of your money over time, making goods and services more expensive, and impacting the value of your retirement contributions
What is inflation?
Investing a fixed amount regularly regardless of market conditions is called this.
What is dollar-cost averaging?
This account earns the lowest amount of interest
What is a basic savings account?
This is a loan you give to a company or government in exchange for interest payments.
What is a bond?
This strategy makes you split your income into three categories/percentages
BONUS (100 points) Label the categories/percentages correctly
What is the 50/30/20 Rule?
BONUS: 50% Needs; 30% Wants; 20% Savings
This is an option for payment as a retired individual that you and your employer have paid into through taxes when you were working, often not enough to live off of.
What is Social Security?
This strategy involves buying and holding investments for a long time.
What is long-term investing?
Daily Double
This account forces you to lock your money away for a certain amount of time before you can access it and it earns a lot of interest.
What is a Certificate of Deposit?
This type of investment focuses on properties like homes, apartments, or buildings.
What is real estate?
This strategy makes you assign every dollar of your income to a specific category
What is Zero Based Budgeting?
This employer-sponsored retirement plan often includes matching contributions
What is a 401(k)?
DAILY DOUBLE
This is the payment/profit you may earn from your stock performing well
What is a dividend?
This account is a hybrid account that allows you to earn high interest while also having easier access to your money through check writing
What is a Money Market Account?
This process is when a company allows the public to invest in their company to get more money and grow over time
What is Initial Public Offering (IPO)?
This strategy makes you put money away for saving before using it on anything else
What is Pay Yourself First?
This retirement account is only for teachers and non-profit workers
What is a 403(b)?
Spreading money across different investments to reduce risk is called this.
What is diversification?
This organization protects your accounts in certain traditional and commercial banks for up to $250,000
What is the FDIC?
This investment combines money from many investors to buy a mix of stocks and bonds.
What is a mutual fund?
This strategy is a way that someone can set goals for themselves in a structured way.
What is the S.M.A.R.T. method?
This type of IRA allows tax-free withdrawals in retirement.
What is a Roth IRA?
This is one of the best (maybe the best) strategy to use when it comes to retirement accounts
What is starting early?
This is a member-owned, not for profit financial institution that offers banking services with lower fees and better rates
What is a credit union?
This investment tracks a market index like the S&P 500 and trades like a stock.
What is an ETF (Exchanged-Traded Fund)?
This type of IRA allows tax-deductible contributions now but you pay taxes later
What is a Traditional IRA?
This strategy is when you invest in a company that is assumed to increase in size and value in a short amount of time