Scenarios
Angela sets her monthly budget to $500. She spends:
$200 on eating out
$80 on entertainment
$20 on transportation
$75 on shopping
How much does she have left to spend on other needs?
What is $125?
This type of account often allows for unlimited transactions, including writing checks and using a debit card.
What is a checking account?
What government tax helps pay for public services like schools, roads, and firefighters, and is automatically taken out of most paychecks?
What is income tax?
Variable expenses _____ from month-to-month, year-to-year, etc.
The S+P 500 consists of how many large companies?
What is 500?
You overspent your dinner budget by $20. You choose to reallocate the $20 from a clothing purchase you planned to make next month. What is the financial term for the lost opportunity of making that planned purchase?
What is opportunity cost?
This type of account is known for its safety and liquidity, allowing depositors to easily access their funds while earning a modest interest rate.
What is a savings account?
For what type of retirement account do you pay taxes upfront but your withdrawals during retirement are completely tax-free?
What is a Roth IRA?
You spent over your limits for wants this month, so you should _____ your budget for next month.
What is readjust?
Name 2 things that affect stock price.
What is supply/demand, inflation and interest rates, current events, sentiment
What is the difference between net income and gross income?
What are deductions?
Gross income = total pay before any deductions
Net income = amount remaining after all mandatory deductions (taxes, insurance) have been removed
This savings account offers a high, but variable, interest rate, often through online banks, while still allowing relatively easy access to funds.
What is a High Yield Savings Account?
What is the amount of money taken out of your paycheck for things like income tax, Social Security, and Medicare called?
What are payroll deductions?
A person is living ___-to-_____ when their paycheck is used to cover their necessary expenses with no money left over.
What is paycheck-to-paycheck?
Dow Jones consists of how many US companies?
What is 30?
Tina is debating what type of loan she should take out and she thinks she should focus on choosing between the three types of secured debt (legally backed by a specific asset that seizes upon default). What are the three?
What are Mortgage, Auto, and Secured Credit Card loans?
This type of account allows you to “lock” your money for a specified period of time for higher interest but can has penalties for withdrawal before the end of the term.
What is a Certificate of Deposit
What type of account helps people save money for retirement and is sponsored by an employer, sometimes including employer matching?
What is a 401(k)?
Someone who doesn’t work at all but has money that is continuously generated utilizes the benefits of ___.
What is passive income?
Strategy where you buy stocks when you expect stock prices to fall
What is short selling?
Megana generates income from selling her assets for more than their purchase price. What is this called (_____ income)?
What is Capital Gains income?
This type of account typically offers a higher interest rate in comparison to others and often requires a higher minimum balance.
What is a Money Market Account?
If you withdraw money from your Traditional IRA before age 59½, you’ll not only owe income tax on it but also this additional 10% fee.
What is an early withdrawal penalty?
Experts recommend that you keep enough money in your emergency fund to cover at least __ to __ months' worth of living expenses.
What is 3 to 6?
The right to buy an asset at $X price within Y time (Hint: It’s a type of option)
What is call option?