Saving
This dedicated stash of cash is for unexpected costs.
What is an emergency fund?
Purchasing a small ownership share of a company via these financial instruments.
What are stocks?
A three-digit number representing your creditworthiness.
What is a credit score?
In U.S. currency, this coin is worth five cents.
What is a nickel?
Money you plan to spend vs. money you plan to save.
What is a budget?
Interest that compounds on both the principal and previously earned interest.
What is compound interest?
This traded fund pools money to buy a diversified portfolio, often tracking an index.
What is an ETF (exchange-traded fund)?
The fee paid to borrow money, expressed as a percentage.
What is an interest rate?
There are this many of these in one U.S. dollar.
What are 100 cents?
Fixed monthly housing cost in a budget.
What is rent (or mortgage)?
This type of interest is calculated only on the original principal.
What is simple interest?
Spreading investments across different assets to reduce risk.
What is diversification?
When you repay less than your full monthly balance, this extra cost is added.
What is a finance charge?
This is the largest U.S. bill currently printed for public use.
What is the $100 bill?
Subtracting expenses from income gives you this.
What is net income?
The process of moving money from a checking account to earn interest over time.
What is depositing into a savings account?
Earnings distributed to shareholders by profitable companies.
What are dividends?
The maximum amount you can borrow on a credit card.
What is a credit limit?
Term for exchanging one currency for another.
What is currency exchange?
Allocating an extra 10% of income to this category helps you prepare for big purchases.
What are savings goals?
When inflation rises, this happens to your money’s purchasing power.
What is a decrease in purchasing power?
A U.S. retirement account allowing tax-free growth, funded with after-tax dollars.
What is a Roth IRA?
A loan secured by collateral, most commonly used to buy a home.
What is a mortgage?
When one currency’s value rises compared to another.
What is appreciation?
Keeping track of every dollar earned and spent over a period.
What is tracking expenses?