The Cost of Living
These recurring costs, like rent or car payments, stay the same every month.
What are Fixed Expenses?
A stash of money set aside specifically for unexpected expenses, like a car repair or medical bill.
What is an Emergency Fund?
The total amount of money you earn before taxes and other deductions are taken out.
What is Gross Pay?
A three-digit number that tells lenders how likely you are to pay back borrowed money.
What is a Credit Score?
DP - This common pricing strategy sets a price at $9.99 instead of $10.00 to make the product feel significantly cheaper to the human brain.
What is Psychological Pricing (or "Charm Pricing")?
Costs that change from month to month, such as groceries, dining out, or utility bills.
What are Variable Expenses?
This mathematical rule estimates how many years it will take for your money to double.
What is the Rule of 72?
A fixed regular payment, typically paid on a monthly or biweekly basis, often expressed as an annual sum.
What is a Salary?
Unlike a credit card, this card takes money directly out of your checking account the moment you use it.
hat is a Debit Card?
This is a written guarantee from a manufacturer promising to repair or replace a product if it breaks within a certain timeframe.
What is a Warranty?
The economic term for the general increase in prices and the fall in the purchasing value of money.
What is Inflation?
A high-interest savings tool where you agree to keep your money in the bank for a set period, such as 12 months.
What is a Certificate of Deposit or CD?
Money earned from investments, such as dividends or interest, rather than from a traditional job.
What is Passive Income?
The "APR" on a credit card statement stands for this, representing the yearly cost of borrowing.
What is Annual Percentage Rate?
DP - This "P-word" describes the practice of companies deliberately designing products to break or become outdated quickly so you have to buy a new one
What is Planned Obsolescence?
The "cost" of choosing one option over another; for example, the movie you missed because you went to a concert.
What is Opportunity Cost?
To automate your savings, many employees use this process to send a portion of their paycheck directly to a savings account without seeing it first.
What is Direct Deposit?
The tax form used by employers to report your annual earnings and the amount of taxes withheld to the IRS.
What is a W-2?
THIS QUESTION WILL GIVE YOU DOUBLE POINTS IF YOU GET THIS RIGHT! - This is the practice of spreading your investments across different assets to reduce risk.
What is Diversification?
When a grocery store lists the "Price Per Ounce" on the shelf tag, it is helping you find this the most accurate way to compare the cost of different sized packages.
What is the Unit Price?
This "N-word" refers to something essential for survival, like water or shelter, as opposed to a "Want," which is something that is simply desired.
What is a Need?
Every time you get $10, $5 goes to "spend now" and $5 goes to "the vault." You still get a treat, but your future self stays rich.
50/50 Split
This is the specific amount of money you actually "take home" in your paycheck after all taxes and health insurance are deducted.
What is Net Pay?
This is the maximum amount of money a credit card company will allow you to borrow at one time.
What is a Credit Limit?
DP - This deceptive marketing practice involves a company claiming their product is environmentally friendly or "green" just to hide their actual unsavory environmental record.
What is Greenwashing?