Banking
Savings account
What is loss aversion
This bias makes people prefer avoiding a loss more than gaining a reward
When can you get your first credit card
18
What type of insurance is when your at blame?
Liability
What are stocks
They are a financial product that represents a share in the company’s ownership
what guarantees you That your money is safe in the bank
Being fdic insured
What is anchoring
People often rely on the first piece of information they see
What is the recommended amount of credit cards to have?
2 to 3 is the suggested amount
What is the premiun on an insurance
The monthly payment on the insurance
What is the type of investment that give you a fixed interest return, usually issued by government or companies called
Bonds
How many times can you withdraw your money of a savings account before getting punished
6 times
What is overconfidence bias
People think they know more than what they actually do
What is the most important part for your credit score
Payment history
When is car insurance the most expensive
The younger you are
What is diversification
When young spread your money investments to different investments to lower risk
What does compound interest do?
Money saved up adds to the total interest earned
What is it called when you buy something just because everybody else is buying that thing?
Bandwagon
What percentage does financial history make up for your credit score?
35%
which insurance covers damages done to you?
Personal Injury Protection (PIP)
This is a group of different stocks or bonds put together so you don’t just pick one
Mutual Funds
How much money can the fdic insure you?
Up to 250,000 dollars
What is the sunk cost fallacy
You keep spending money on something because you spent a lot on it already, even if it’s not worth it anymore
When it’s best to start building credit?
As soon as possible
Between 60-90 percent depending of your premium and deductible
What is a Bull and Bear Market
Bear = Failing Market
Bull = Rising Market