Cognitive Bias
This is when spend money because you are afraid of being left out.
FOMO
In the 50/30/20 budget, this makes up 50%.
What is your needs?
In a zero-based budget, your income minus expenses should equal this.
What is Zero?
You are a partial owner in a company when you buy these.
What is Stock?
This type of card lets you borrow money up to a limit and pay it back over time.
What is a credit Card?
When you make decisions based on what the majority is doing.
What is Herd Mentality?
The total value of money and other assets minus debts
What is Wealth?
This is the main purpose of a checking account.
What are daily transactions and bill payments?
the world's largest and one of the oldest stock exchanges still in use today? Known as the "Big Kahuna".
What is the NYSE?
This is the amount of time you agree to repay the money you borrowed.
What is the Term Length?
When something looks like it won't work out but you continue to invest time, money, and/or resources into it.
What is the Sunk Cost Fallacy?
1._________is before taxes and deductions are taken, and 2.________ is your take-home pay
What is Gross and Net Pay?
This type of account typically offers higher interest rates.
What is a Savings Account?
A stock with market capitalization over $10 billion
What is Large Cap Stock?
This is what the amount of money you borrowed is called.
What is the Principal?
This is when you seek out information that supports your existing beliefs while ignoring contradicting evidence.
What is Confirmation Bias?
They are any items subtracted from your paycheck, including state and federal income taxes, Social Security, health insurance or 401(k) contributions
What are Deductions?
Sometimes known as the 8th wonder of the world, this type of interest allows you to earn interest on your interest and grow your wealth exponentially.
the stock market index that measures stocks from both the NYSE And The NASDAQ.
what is The S&P 500
Someone who legally agrees to take responsibility for a person's debt if they cannot repay it
What is a Co-Signor?
Psychologists describe this cognitive bias as people valuing things they own more highly than identical items they don't own.
What is the Endowment Effect?
Social Security and Medicare make up this federal tax that takes 7.65% of your income.
What is FICA, Federal Insurance Contributions Act
The U.S. organization that insures deposits in U.S. banks against bank failure and insures your money up to $250,000
What is FDIC? (FEderal Deposit Insurace Corporation)
A collection of investments managed by professionals
What is a Mutual Fund?
This is the percentage of your available credit that you're currently using; experts generally recommend keeping it below 30%
What is Credit Utilization?