personal finance
Paying on time is the most significant factor for determining your...
What is credit score?
Interest paid on interest previously earned
What is compound interest?
This person guarantees repayment of a loan in case a borrower defaults...
What is a co-signer?
A bank account you use to save money...
What is a savings account?
This type of investment allows you to buy a share of a basket of different stocks or bonds
What is a mutual fund?
True or False: You should always pay only the minimum amount due on a credit card.
False. Always pay more to reduce the interest paid.
The persistent increase in the cost of goods and services or the persistent decline in the purchasing power of money.
What is inflation?
This type of interest rate may fluctuate over time and is less risky for the bank.
What is a variable interest rate
This the amount of knowledge it takes vs. behaviors to make smart financial decisions...
What is 20% knowledge, 80% behavior?
A retirement savings plan offered by a corporation to its employees. The employee contributes money from their gross pay and the money in the account grows tax deferred. Sometimes an employer will match the employee’s contribution.
What is a 401K?
Who should you always pay first after earning a paycheck?
Yourself! (savings account)
A cash flow plan that assigns an expense to every dollar of your income, wherein the total income minus the total expenses equals zero...
What is a zero-based budget?
When a bank takes back your house due to non-payment...
What is foreclose?
Term used to describe what the consumer pays to borrow money. Essentially the cost of a loan.
What is interest?
This is an index fund which tracks the performance of the top 500 stocks traded on the stock exchange
What is the S&P 500?
Unlike a Credit Union which is owned by it's members, banks are often owned by...
What are Investors or Shareholders/Stockholders?
When money is withdrawn from a bank account and the available balance goes below zero...
What is overdraft?
Experian, Equifax, Transunion
What are the credit reporting agencies
A debt instrument by which the company owes you money; a form of I.O.U. The company makes regular interest payments and promises to pay back to redeem the face value at a specified point in the future (maturity date).
What is a bond?
A valuation ratio of a company's current share price compared to its per-share earnings...
What is P/E Ratio?
Originally created by the Fair, Isaac and Company. This is another name for your credit score.
What is FICO score.
A new car loses value as soon as it is driven off of the lot. This is known as...
What is depreciation
A missed payment and a bankruptcy stays on your credit report how many years?
What is 7 years for a missed payment and up to 10 years for a bankruptcy?
Often seen when exploring the cost of a credit card or rate of return for a savings account. This 3 letter acronym is the approximate yearly cost of borrowing money from a financial institution.
What is APR (Annual Percentage Rate)
Used by investors to compare the expected return of an investment to the amount of risk they take to get the return.
What is the risk return ratio?