How to make extra money without working another job!
A way to grow your money over time.
INVESTING.
Why is it important to invest?
It is important to invest to grow wealth, achieve financial goals, and prepare for future expenses (retirement).
Is an avocado a fruit or a vegetable?
It's a fruit.
When you stop working and live off the money you saved and earned.
RETIREMENT.
What is a 401(k) plan?
A 401(k) plan is a way for people to save money for retirement through their job.
When the stock market rises 20% it is called a ________ economy.
BULL economy
The increase in prices of goods and services over time. When this happens, the money you have buys less than it did before.
For example, if a candy bar costs $1 today might cost $1.50 next year.
INFLATION
What is the national animal of Scotland?
Unicorn.
Why is investing for retirement important?
It helps you save enough money to live comfortably when you stop working.
Depending on how well you save/invest you can retire sooner.
What are the advantages of a 401(k) plan?
Advantages of a 401(k) plan include tax breaks and sometimes getting extra money from your employer.
This account has lower interest rates and your money loses value over time due to inflation.
A SAVINGS ACCOUNT
What does compounding mean in investing?
Compounding means your money can earn interest on top of interest, helping it grow faster.
What can be broken but is never held?
A promise.
What is Social Security, and why can't most Americans rely on it alone?
Social Security is a government program that gives money to people when they retire, but many people need more than just that to live.
Also, it might not be around when we get to retirement age.
If your job doesn’t offer a 401(k), you can open an IRA, which is another way to save for retirement.
What does IRA stand for?
Individual Retirement Account.
Buying a small part of a company or organization.
When they make money you make money.
When they lose money you lose money.
STOCKS
Why is it important to start investing early?
Compounding Interest helps build your wealth because the longer you keep your money invested, the more it can grow.
Which tech entrepreneur named his son X Æ A-12?
Elon Musk
Name a factor that can affect how much one needs in retirement.
Health
Life expectancy
Lifestyle
Spending Habits
Location
Compare a Roth IRA and a traditional IRA.
A Roth IRA lets you take money out tax-free in retirement because you pay taxes annually.
A Traditional IRA you pay taxes when you take the money out.
When companies share thier profits in the form of cash payments on a regular schedule. These are lower-risk investments.
A DIVIDEND
How can investments help combat inflation?
Investing can fight inflation because good investments usually increase in value over time.
Where were the fortune cookies invented?
California.
What is the role of risk in retirement planning?
Risk means the chance that you might lose money when you invest, and it’s important to think about when planning for retirement.
What are the differences between a pension and a 401(k)?
A pension is a plan that pays you a set amount each month when you retire, while a 401(k) depends on how much you save and how well your investments do.