Saving
What do the initials CD stand for?
What is certificate of deposit
Money received from work, allowance or investments.
What is income?
The best way to stay on a budget is to use this method of payment.
What is cash or debit card?
Opening a credit card account will affect your credit score.
What is true.
Most millionaires inherit their wealth.
What is false
All employees pay into Social Security and Medicare.
What is true
A good way to track your spending and budget your money is by using this type of tracking tool.
What is spending log
The percentage charged by a lender for borrowing money, or paid to you for keeping a money in a savings account.
What is an interest rate?
A share of ownership in a company that anyone can purchase.
What is a stock.
What is the money called after taxes and deductions? (Gross income - taxes - deductions).
Net Income
Anything of value that you own.
What are assets?
A number representing how trustworthy you are at repaying borrowed money.
What is a credit score?
Spreading investments across different assets to reduce risk.
What is diversification?
Anything of value that you own.
What is an asset?
This type of expense includes items which are optional, impulsive and emotional purchases (different from necessary expenses).
What are needs?
The 50/30/20 rule.
What is the rule that indicates that you should put 50% of your income towards needs (food, rent, etc.), 30% towards wants (skis, Empire hat, etc.), and 20% towards savings or paying off debt.
Interest earned on your initial money plus on the interest that has already accumulated.
What is compound interest?
The U.S. federal program providing financial benefits for retirement, disability and survivorship. It is paid for by payroll taxes.
Social Security
Money set aside for unexpected, urgent expenses.
Emergency Fund
The average interest rate charged by a bank on a credit card. (Hint the answer is a percentage).
An interest rate between 18% and 30%