Financial Goals and Saving
Money put aside for future use is called this.
Saving
Purchasing something expected to increase in value or produce income is called this.
Investing
As investment risk generally increases, the potential for this also increases.
Return
A program that rewards customers with points or discounts for shopping regularly.
Loyalty program
A reward that gives you cash or credit based on a percentage of your purchases.
Cashback
A goal to buy something within the next few months would usually be considered this type of goal.
Short term
A savings account generally has this level of risk.
Very low
Which generally has more risk: a savings account or a GIC?
Stock
A reward offered by a company to encourage consumers to buy something.
Incentive
The amount charged every year to keep some rewards credit cards active.
Annual fee
Name one question you should ask when setting a savings goal.
What am I saving for? / How much? / What is the timeframe?
This investment represents a share or piece of a public company.
Stock
For a short-term goal, an individual may choose this type of financial option to help keep their money secure.
Low risk
A sale that significantly reduces a price but lasts only a few hours is called this.
Flash sale
Besides the advertised price, name one additional cost a consumer should consider before purchasing something online.
Shipping / taxes / fees
Gurpreet wants to reach a savings goal in eight weeks. He realizes he needs to reduce his spending to get there. What financial tool should he review?
Budget
An investment made up of stocks, bonds, and other investments that is shared by many investors.
Mutual fund
Someone saving for a goal far in the future may consider investments with this level of risk.
Higher risk
What should you consider when a promotion encourages additional spending?
Value
A credit card offers excellent rewards but has a $150 annual fee. What should you compare to determine whether the card is worthwhile?
Benefits vs. costs
A savings goal is considered realistic when it takes this into account.
Your circumstances
Blaire has a mid-term goal, doesn't need the money immediately, and is willing to accept some risk. Which type of investment could fit these circumstances?
Mutual fund
Why might someone with a long-term goal consider a higher-risk investment?
Higher potential return
What should you consider beyond the advertised price?
Total cost
A product costs $50, but you discover $10 in shipping. What is the actual cost before taxes?
$60