Banking/Savings
Which savings tool is the most liquid.
The checking Account
Is saving or investing riskier?
Investing
A sum of money demanded by a government to support the government itself as well as specific facilities or services
taxes
What is interest?
Charge for using money
an activity through which an individual can earn money
job/employment
CD stands for ...
Certificate of Deposit
401K and IRA are ...
retirement plans
A person who pays a tax to national, state, county or municipal (city/town) governments
taxpayer
receiving goods or services today with the promise to pay the money later in full or in increments with interest
credit
skills, knowledge and experiences possessed by an individual
human capital
Depository Institution means ...
Bank/credit union or place to store money safely
Ticker symbols are...
Organization of letters or characters (or a combination of both) that represent a company's stock
What are the taxes taken out of your paycheck?
Federal, state, FICA(social security and medicare)
What is a mortgage
a loan agreement between you and a lender that gives the lender the right to take your property if you fail to repay the money
skills, knowledge and experiences possessed by an individual
transferable skills
Liquid means?
easily converted to cash
Diversification means...
alleviates some risk by allocating investments across different financial instruments, industries, and several other categories
A federal program with the main purpose to help pay for health care for senior citizens in the U.S.
Medicare
What is the credit score range?
300-850
What is social capital?
similar to networking -working everyday to interact and communicate with others
Name the 4 savings tools that we studied and which one typically gives more interest.
checking, savings, money market, CD
CD
Explain what a mutual fund is
A mutual fund is a pooled collection of assets that invests in stocks, bonds, and other securities.
Explain what Social Security is
a federal government program that helps citizens fund retirement, as well as helps people who have experienced profound disability
What is closed end credit?
This is an installment loan borrowers usually take out for a specific purpose. Lenders extend a specific amount of money that must be repaid (including interest) over a set time frame. Mortgages, car loans or student loans are examples of closed-end credit
List 3 ways to invest in yourself/human capital skills
ability to fix things, education, travel, volunteering in a homeless shelter, etc