Money & Insurance
The exchange of goods without the use of money
Barter
What type of bank is owned by its members?
Credit Union
What is APR?
Annual Percentage Rate (interest)
What type of asset can you buy that makes you a part owner of a company?
Stock
When is it best to start saving and investing and why?
The earlier the better. Compound interest will help investments grow. Creates financial security.
If you have caused an accident, which type of automobile insurance would cover damage to your own car?
Collision
What is the most liquid bank account type?
Checking account
What number tells lenders how credit worthy a person is? What is the range for numbers?
Credit Score (FICO score); 300-850
What is it called when a company shares part of its profits with its shareholders (people who own stock)?
Dividend
What should you have to monitor and plan for your spending and saving on a monthly basis?
Budget
What is Net Pay?
Gross Pay - Deductions = Net Pay
What is a PIN and how/where do you use it?
Personal Identification Number; ATMs and making debit card purchases
How are your credit score and your interest rate related?
Inversely; A high credit score means a low interest rate, and vice versa
What is a retirement plan offered through your employer?
401k
Why is your money worth more today than it is tomorrow?
Inflation
What are the mandatory deductions from your paycheck?
Federal and state taxes, and FICA (Social Security & Medicare)
What is the difference between a credit card and debit card?
Credit card is a loan, debit card the $ comes directly from your account.
What are the 3 major credit reporting agencies?
Transunion, Equifax, Experian
What is it called when you have different types of assets for your investments?
Diversification
What is the equation for Net Worth?
Net Worth = Assets - Liabilities
W4 - tells your employer how much to withhold from your pay for taxes
Which federal agencies insure your bank deposits up to $250,000 per account?
FDIC
What is the difference between a secured and unsecured loan?
Secured loan is backed by collateral, and unsecured is not.
What is the primary sources of income for most people age 20-35?
Salaries, wages & tips
What is a retirement plan offered by a bank
IRA