Personal Finance
Money kept aside for unexpected expenses is called this.
What is an emergency fund?
Money borrowed that must be paid back with interest.
What is a loan?
The cost of borrowing money, expressed as a percentage.
What is an interest rate?
A spending plan for your income.
What is a Budget?
Insurance that covers damage to your vehicle.
What is car insurance?
A score that shows how reliable you are when it comes to paying back debt.
What is a credit score?
The original amount borrowed before interest is added.
What is the principal?
Interest calculated only on the principal.
What is simple interest?
Expenses that stay the same each month, like rent, are called this.
What are fixed expenses?
Insurance that helps pay for medical expenses.
What is health insurance?
The difference between assets and liabilities is called this.
What is equity or net worth?
A mortgage is an example of this type of loan.
What is a secured loan?
If you borrow $100 at 10% simple interest for 2 years, how much interest do you owe?
What is $20?
If you earn $2,000 monthly and spend $1,800, what is your surplus?
What is $200.00?
The amount you must pay out-of-pocket before insurance kicks in.
What is a deductible?
This type of account allows your money to grow tax-free if used for retirement.
What is a Roth IRA or retirement account?
A loan where the interest rate can change over time.
What is a variable-rate loan?
The type of interest rate that has been adjusted to remove the effects of inflation.
What is the real interest rate?
This budgeting method involves dividing money into categories labeled "needs," "wants," and "savings."
What is the 50/30/20 rule?
Insurance that replaces part of your income if you cannot work due to illness or injury.
What is disability insurance?
This strategy involves spreading money across different asset classes to reduce risk.
What is diversification?
This type of repayment plan allows a borrower to pay only interest for a period before principal payments start.
What is an interest-only loan?
This formula (72 รท rate) estimates how long it takes to double your money.
What is the Rule of 72?
A budgeting method that tracks every single dollar earned and spent is called this.
What is zero-based budgeting?
This type of insurance protects a business or person from claims of negligence that cause injury or damage.
What is liability insurance?