Money Basics
A monthly written plan where you track how much money you earn versus how much you spend.
What is a budget?
A plastic card linked directly to your checking account that spends money you already have.
What is a debit card?
Buying a small fraction of ownership in a public company like Apple, Nike, or Tesla.
What is a stock?
A fixed amount of money agreed upon for a worker's regular compensation, usually quoted as a yearly total.
What is a salary?
The animal symbol used to describe a stock market when stock prices are steadily rising.
What is a bull?
Money set aside in a secure account for future goals or unexpected emergencies rather than spent today.
What are savings?
A card that lets you borrow money up to a limit from a bank to buy items now and pay later.
What is a credit card?
The famous street in New York City that serves as the symbol of American financial markets.
What is Wall Street?
The actual "take-home" amount on a paycheck after taxes and deductions are removed.
What is net income (or net pay)?
The animal symbol used to describe a stock market when stock prices are rapidly falling.
What is a bear?
The general rise in prices over time, which reduces what your money can buy.
What is inflation?
The extra fee a bank pays you for storing your money, or the fee you pay them for borrowing money.
What is interest?
Spreading your investments across different assets to lower your total risk (i.e., not putting all your eggs in one basket).
What is diversification?
Mandatory contributions collected by the government from wages to fund roads, schools, and public services.
What are taxes?
The digital currency created in 2009 by an anonymous figure known as Satoshi Nakamoto.
What is Bitcoin?
Any money going out of your wallet or bank account to pay for needs, wants, or bills.
What is an expense?
The 3-digit security code found on the back of most payment cards used to verify online purchases.
What is a CVV (or Security Code)?
An investment where you loan money to a government or corporation in exchange for regular interest payments.
What is a bond?
Payment calculated based on the exact number of hours worked multiplied by an hourly rate.
What are hourly wages?
The hit reality TV show where aspiring entrepreneurs pitch their business ideas to wealthy investors like Mark Cuban.
What is Shark Tank?
Money you owe to a bank, company, or person that must be paid back later.
What is debt?
A bank account designed for daily transactions like paying bills, making purchases, and ATM withdrawals.
What is a checking account?
The possibility that an investment will lose value instead of gaining it.
What is risk?
The baseline minimum hourly wage that employers are legally required to pay workers by federal or state law.
What is the minimum wage?
The term given to a stock that skyrockets in popularity and price primarily due to viral social media trends on platforms like Reddit or TikTok.
What is a meme stock? (or GameStop)