Banking and Financial Institutions
This federal agency protects your money in banks up to a certain amount if the bank fails.
What is the FDIC (Federal Deposit Insurance Corporation)?
This principle encourages individuals to set aside money before spending on anything else.
What is Pay Yourself First (PYF)?
This financial tool helps you plan and track income and expenses.
What is a budget?
Buying a store-brand product instead of a name-brand product is an example of this shopping strategy.
What is comparison shopping?
This type of investment represents ownership in a company and can increase in value over time.
What is a stock?
Credit unions are different from banks because they are owned by these individuals.
What are members?
This type of savings account locks your money for a set period and typically offers a higher interest rate than a regular savings account.
What is a Certificate of Deposit (CD)?
Expenses that do not change from month to month, such as rent or a car payment, are called this.
What are fixed expenses?
Creating this before going to the grocery store can help you stay on budget and avoid impulse purchases.
What is a shopping list?
This type of fund pools money from multiple investors to buy a diversified portfolio of stocks, bonds, or other securities.
What is a mutual fund?
This type of account is typically used for everyday transactions and allows you to make withdrawals and deposits easily.
What is a checking account?
The time value of money means that money today is worth more or less than the same amount in the future?
What is more?
What is the recommended percentage of income that should go toward saving and investing in a 50-20-30 budget plan?
What is 20%
Buying items in bulk can save money in the long run, but what should you check before making bulk purchases?
What is expiration dates or storage space?
The relationship between risk and return states that higher-risk investments generally offer this.
What is a higher potential return?
Name two consequences of mismanaging a checking account.
What are overdraft fees and non-sufficient funds (NSF) charges?
What is one benefit of investing in a Roth IRA compared to a traditional IRA?
What is tax-free withdrawals in retirement?
List one example of a variable expense.
What is groceries, gas, entertainment, or utilities?
Stores use this pricing strategy by placing more expensive items at eye level to encourage shoppers to buy them.
What is product placement psychology?
Investing in a mix of stocks, bonds, and other assets to reduce risk is known as this strategy.
What is diversification?
Name one advantage of using online banking services.
What is convenience, 24/7 access, or automatic bill payments?
List two investment products that typically carry a higher risk but may offer higher returns.
What are stocks and real estate?
What type of expense is an emergency fund considered?
What is a savings expense?
What is one advantage of using coupons or cashback apps when grocery shopping?
What is saving money or getting discounts?
Why are mutual funds not generally cost efficient?
They are manage by a person who charges fees. They do not necessarily get higher rates of return.