Earn the Money
You can choose the best ______ by understanding your interests, aptitudes and values
Job
What is a financial institution? Give an example of one?
A business that provides money related services. (Bank, credit union, investment bank, etc.)
Basic account to put your money in. Pays low interest (mostly). Short term option.
Savings account
This is how most people go to the bank today
Online
Is water a want or a need
Need
Required payments to a government
Taxes
When you put your money in a bank account you can earn ________. But you have to pay it if you take out a loan...
Interest
Represents partial ownership of a company. (You buy this in the form of "shares"). Medium to high risk involved. Your growth depends on how the company does.
Stocks
This is like a bank, but not everyone can be a member and it is a not-for-profit institution
Credit Union
Is Chipotle a want or a need?
Want
This is added on to your bill when you purchase something at the store. (In MD it's %6)
Sales Tax
There's a certain amount of risk involved when you ________ your money. (for example, when you buy stocks, you could lose money)
INVEST
An IOU. You lend the issuer money. Then the issuer promises to pay you back when the ____ "matures" (could be 3, 5, 10 years, etc.) You get your money back plus all of the interest that was earned.
Bond
you use this when you want to temporarily spend the bank's money instead of yours. You'll have to pay the bank back at the end of the month!
Credit
What happens if you don't pay your Credit Card bill on time?
Interest starts to add up on the money you borrowed. VERY BAD!
This is taken directly out of your paycheck before you even get it by the government!
Income Tax
You could either spend $5 on a movie or save $5. If you choose to save, the movie was the
_________ __________ (what you give up when making an economic choice).
Opportunity Cost.
Professionally managed account. Includes multiple stocks and bonds within it.
Mutual Fund
Instead of carrying cash, you can carry a
_____ _____. When you scan it, it takes the money directly out of your bank account. There's no interest on what you spend.
Debit Card
This is when you buy something without thinking about it for instant gratification. (Like buying a ramen noodle hoodie without thinking it might look stupid on you )
Impulse buying
Name two thing that our tax dollars go towards
schools, police, public parks, social security, medicare, transportation etc.
Before you do ANYTHING...when you get paid you should always pay _________ __________
Pay YOURSELF FIRST (save money!!)
Pays higher interest but you must leave your money in for a certain period of time (6 month, 1 year, 3 year, etc.) and you CAN'T take your money out early.
Certificate of Deposit
This is a number that represents how likely you are to pay back a debt.
Bonus: Tell me a good one
Credit Score
700-850
When trying to track how much money you make, how much you need to spend on bills, how much you want to save and how much you have left over, you should really create a _________
Budget