Banking
What are the two types of bank accounts?
What is a cognitive bias?
systematic error in thinking
What is credit?
The ability to buy things and pay later
What is the meaning of insurance?
Contract for financial protection from risk of loss
What is a risk of investing?
You can lose all your money
What does it mean when your checking account overdrafts?
It means you have a negative bank balance
What is a budget?
A way to balance income expenses and financial goals for a specific length of time’s
What is the principal when it comes to loans?
The amount of money borrowed
What is an actuary?
A professional who analyzes risk and calculates premium needed to cover potential loss payments.
What is an ETF?
Exchange Traded Fund
Which of these two are FDIC insured?
checking or savings
Both!
Name the four types of budgeting strategies
50/20/30 budget, pay yourself first, zero based budget, and envelope budget
What is the exact range number of your credit score?
300-850
What are auto insurance coverage component? Name at least 3
Liability, collisions, comprehensive, PIP, uninsured motorists
What are two ways to invest?
Active and Passive
How long should your emergency fund save for?
3-6 months of living expenses.
Disposition bias is based on?
Selling assets that have increased value
Name a company that creates credit reports
Equifax, Experian, or TransUnion
What are five factors that determine auto insurance rates? Name at least 4
Deductibl, make model year, mileage you drive, your driving record, and your personal information.
What are the two types of retirement saving account?
401k and IRA
What are the 3 functions of money?
Medium of exchange, unit of account, and store of value
What category do the following things belong to?
rent, food, healthcare, and education
Expense categories
Name five factors that affect your credit score
Payment history, credit utilization p, credit history length, types of credit, new credit/inquiry.
How do disasters impact insurance?
Disasters increase risk, leading to higher premiums
What is and index fund?
A type of mutual or exchange traded fund that tracks the performance of a market index.