Budget
Can someone be “rich” but still have a bad budget? Why or why not?
Multiple correct answers
What is a financial goal
A financial goal is a plan you make for how you want to use your money in the future
What is the difference between a savings and checking account
Checking account is an account you use everyday whereas a savings account is where you store your money and bigs of interest can accumulate overtime.
Why do people invest in stocks and why do they not just invest in one but many?
Answers may vary.
How long should your emergency fund get you by?
3-6 months
What are fixed and variable expenses
Fixed means not changed and variable means it is changing
How much of your income should you save?
15-20%
What is a high yield savings account?
A high yield savings account has a higher interest rate than normal savings account but functions the same.
What is the safest type of stock investment
Bonds
Why is it important to have an emergency fund
Answers vary.
What is short-term saving vs. long-term saving?
Short-term saving is money set aside for expenses within the next year (like a new phone or trip), while long-term saving is for goals years away (like college or a car).
What is the normal job of a financial consultant?
A financial consultant helps individuals or businesses plan, manage, and grow their finances by offering expert advice
What is an alternative but serves as the same purpose of a high yield savings account?
Money Market Account or Certificate of Deposit
What is the average annual return rate for S & P 500 ETF Stock
10%
Would a broken phone screen be a good reason to use your emergency fund? Why or why not?
Answers may vary.
What is take home pay, and how is it different from gross income?
Take home pay is after taxes and all other expenses and gross income is before taxes and other deductions.
What does SMART stand for in SMART Goals
Specific, Measurable, Achievable, Relevant, Time-bound
What does APY stand for?
Annual percentage yield
What type of stock is NASDAQ stock
Technology Stock
Where would you put your emergency savings in?
Answers may vary, extra credit for money market as a response
Use the 50/30/20 budget method for a family making $500 a month with also $200 in total tax
50% of needs is $150, 30% of wants is 90$ and 20% of savings and debt payment is $60
What is a long-term financial goal?
Answers may vary: College, Mortgage (house), retirement
Distinguish the differnece between APR and interest
Interest is cost of borrowing money or gain in saving money
What does NASDAQ stand for
National Association of Securities Dealers Automated Quotations
What’s the difference between a rainy day fund and an emergency fund
They have the same purpose but rainy day is for minor small emergency fund expenses whereas an actual emergency fund is for big expenses.