BANKING 101
This is the safe place where you store your money and can earn interest over time.
What is a Bank or Credit Union
In this popular budgeting rule, 50% goes to needs, 30% to wants, and 20% to savings.
The 50/30/20 Rule
This three-digit number tells lenders how trustworthy you are borrowing and repaying money.
What is a Credit Score
When you buy this, you purchase a tiny piece of ownership in a real company.
What is a Stock (or Share)
This economic term describes when prices rise over time, meaning your money buys less than it used to.
What is Inflation
This is the extra money a bank pays YOU just for keeping your savings with them.
What is Interest
You earn $50 a week. Saving 20% each week, this is how much you'd save in a month (4 weeks).
What is $40
APR stands for this term - it tells you the yearly cost of borrowing money from a lender.
What is Annual Percentage Rate
This classic investing phrase means purchasing assets when they're cheap and selling them after they gain value.
What is Buy Low, Sell High
This is money borrowed from a lender that must be paid back - usually with added interest.
ATM stands for this three-word phrase that describes a machine letting you access cash anytime.
What is a Automated Teller Machine
This stash of money is set aside specifically for unexpected expenses like medical bills or car repairs.
What is an Emergency Fund
Unlike a debit card that uses your own money, this card lets you borrow money and pay it back later.
What is a Credit Card
This investing strategy spreads your money across many different assets to reduce risk.
What is Diversification
Your net worth equals this: everything you OWN minus everything you OWE.
What is Assets minus Liabilities
This type of account is designed for everyday purchases, while a savings account earns more interest.
What is a Checking Account
This saving strategy means putting money into savings BEFORE spending on anything else each month.
What is Paying Yourself First
If you only pay the minimum balance on your credit card each month, this costly thing happens.
What is you pay more interest and it takes much longer (and more money) to pay off the debt
This special retirement savings account is often offered by employers, sometimes with matching contributions.
What is a 401(k)
Employers send this tax form to employers every January showing total earnings for the past year.
What is a W-2 Form
What is FDIC Insurance (Federal Deposit Insurance Corporation)
This powerful concept means earning interest on your interest - making your money grow faster and faster over time.
What is Compound Interest
Name any TWO of the five major factors that affect your credit score.
What is payment history, amounts owed, length of credit history, credit mix, new credit inquiries
This famous index tracks the performance of the 500 largest publicly traded companies in the United States.
What is the S&P 500
What is Net Income (Take-Home Pay)