Budget
50=Needs, 30=Wants, 20=Savings
The total cost of the item you're purchasing on a loan, minus any down payment, is the....
Principal
This is the main fee to consider when choosing which bank to open an account with.
This cognitive bias is when we read, look up or consume information that only confirms what we already believe.
Name two different kinds of investment accounts.
401Ks and IRAs
Which of these would be the hardest to save money on in a monthly budget? Mortgage, dining out or your cell phone bill?
Mortgage
How does a good credit score help when getting a home or car loan?
Lower interest rate, lower overall cost of loan
If you are wanting to see your money gain higher returns would you save or invest?
Invest
This cognitive bias is when we make decisions based on other people's actions, and to be part of the crowd.
Bandwagon
True or False. Checking accounts will earn you a higher interest rate on deposits than a Savings account.
False
This is the method of budgeting where you account for every dollar you make.
Zero Based Budgeting
True or False. People choose lower monthly payments on loans to help them pay it off faster.
False
What is simple interest?
You only earn interest on the original amount deposited.
True or False. Staying calm in market downturns and diversification are both examples of responsible financial behavior.
True
What is the main benefit of 401Ks in regards to contributions you make?
They may be matched by an employer.
Describe the "Pay Yourself First" method of budgeting.
You account for savings before spending anything else.
An investment with a lower risk would expect to come with a higher or lower return...
Lower
You want to have partial ownership of a company. Would you buy a bond or a stock?
Stock
Investing in companies that align with your risk level is an example of investing according to your risk ______.
Tolerance
True or False. 401Ks are available to ANYBODY.
False.
This is the name for the pay you make BEFORE taxes are taken out.
Gross Pay
What is diversification, and why should you do it?
Investing in different assets or asset types, and it makes your investment portfolio safer
You bought 5 shares of a company at $10 per share. You sold all 5 at $60 per share. How much profit did you make?
$250
Give an example of unresponsible or bad behavior in regards to your investments.
Answers can vary
You do NOT have overdraft protection. You have $10 in your account, and go to buy a meal for $18. What happens when you got to pay?
Your card gets declined, but you don't have any fees to pay.