Credit Card
A means of borrowing money that is accompanied by interest and sometimes fees
Credit
What kind of card is used to access your checking account
Debit card
the money one has saved, especially through a bank or investment plan
Savings
To put money into a project, or to buy property, shares in a company
Investement
Price being paid to borrow money, often expressed as a percent over time
Interest
A three-digit number, typically between 300 and 850, designed to represent your credit risk, or the likelihood you will pay your bills on time.
Credit Score
What is a checking account used for?
Daily Expenses
How do saving accounts work?
The bank pays you compounding interest just for keeping funds in your account
3 Common investment risks?
1. Interest Rate Risk
2. Credit Risk
3. Equity Risk
A contract between an individual or business with an insurance company to help provide financial protection and mitigate the risks associated with certain situations or events?
Insurance
How often do you have to pay off your credit card bill?
Monthly
When money is transferred directly to your account instead of receiving physical paycheck
Direct Deposit
How much does a savings account cost?
Monthly fees vary but usually range anywhere from $5 to $8. However, fees for high-yield savings accounts can be as high as $25 per month
What are 3 things should someone know before investing?
1. Your objective/ goal
2. Understand risk
3. Research investment accounts
a plan you write down to decide how you'll spend your money each month
Budget
Should you spend your credit card limit?
Lenders generally prefer that you use less than 30 percent of your credit limit
Joint Checking Account
Account that lets you set aside money on a pre-tax basis to pay for qualified medical expenses
Health Savings Account
What is diversification?
the spreading of your investments both among and within different asset classes
the value of all assets, minus the total of all liabilities.
Networth
What is considered an "exceptional" credit score?
800-850
Is there a minimum balance requirement?
Yes, unless you specifically have an account without the requirement
Account where money after taxes is sent, but early removal of money can cause a penalty.
IRA
What is the Buy-and-Hold strategy for investment?
The investor buys financial assets or non-financial assets such as real estate, to hold them long term, with the goal of realizing price appreciation, despite volatility
All the money you earn before taxes and other deductions are subtracted.
Gross Income