Banking
What type of bank account is best for everyday spending and paying bills?
checking account
What is the term for a plan that helps track income and expenses?
Budget
What three-digit number summarizes your creditworthiness?
Credit score
What is insurance?
a way to protect against financial loss
What is the term for money you put into assets like stocks or bonds to grow wealth over time?
Investing
What is the term for the fee charged when you withdraw more than your account balance?
Overdraft fee
What’s the 50/30/20 rule in budgeting?
50% needs, 30% wants, and 20% savings/debt repayment
What is the term for borrowing money that must be paid back later, usually with interest?
Credit
What do you call the amount you pay each month to have insurance coverage?
A premium
What is the name of a small ownership share of a company
Stock
What is the federal agency that insures deposits in most banks up to $250,000?
FDIC
What is the psychological term for spending more with cards than with cash?
the pain of paying
What are the three major credit bureaus in the U.S.?
Equifax, Experian, and TransUnion
What is the term for the amount you must pay out of pocket before your insurance kicks in?
A deductible
What does "diversification" mean in investing?
spreading investments across different assets to reduce risk
What’s the main difference between a credit union and a traditional bank?
a credit union is member-owned and typically offers lower fees
What behavioral bias causes people to continue spending money on something because they’ve already invested a lot in it?
The sunk cost fallacy
What part of your credit report shows how much debt you owe compared to your credit limit?
your credit utilization ratio
What type of insurance covers damage to your car in an accident you cause
Collision coverage
What’s the difference between a traditional IRA and a Roth IRA?
traditional IRA is taxed later, while a Roth IRA is taxed now
What type of bank account earns interest and is best for setting money aside, but usually limits withdrawals?
Savings account
What’s the term for setting up automatic savings to reduce the temptation to spend?
automatic enrollment or pay-yourself-first
What law allows you to get a free credit report from each bureau once per year?
the Fair Credit Reporting Act
What type of insurance protects your income if you become unable to work due to illness or injury?
disability insurance
What is the term for the tendency of investments to rise and fall unpredictably in the short term?
market volatility