Basic Finance
Money owed to a person or business.
What is debt?
Setting aside money for short-term or long-term future use.
What is savings?
A three-digit number designed to represent the likelihood you will pay your bills on time.
What is a credit score?
Represents a share of ownership in a company.
What is a stock?
The actual intermediary that connects buyers with sellers.
What is a stock exchange?
The amount the lender charges you for each month you don’t pay off the loan; the cost of borrowing money.
What is interest?
A plan to decide how to spend, save or invest money each month.
What is budgeting?
A payment card that allows you to borrow money from a bank to make purchases and pay them off later.
What is a credit card?
A person, company, or institution that owns at least one share of a company’s stock.
What is a shareholder?
Using money to purchase assets with the potential for higher returns compared to only saving.
What is investing?
The original amount you owe from the loan you took out.
What is principal?
A sum of money paid by a tenant to a landlord at the start of a lease, intended to protect the landlord from potential damages or unpaid rent.
What is a security deposit?
The application to apply for student loans through the government.
What is FAFSA?
A cash distribution of a company’s profits.
What is a dividend?
A cryptocurrency introduced in 2009 designed to act as money.
What is Bitcoin?
A loan used to purchase real estate.
What is a mortgage?
The interest you accumulate on interest.
What is compound interest?
Pay the minimum on all loans, then pay any extra you can afford on the smallest loan.
What is the Snowball Method?
Where you buy and sell stocks.
What is a stock market?
The first stock market.
What is the London Stock Exchange?