Keep Calm and Credit On
True or False: You should always pay only the minimum amount due on a credit card.
What is False?
(Always pay more to reduce the interest you are paying.)
The organization selling the bond (who is borrowing the $), is called the ________.
What is the issuer?
This type of investment allows you to buy a share of a company
What is a stock?
In financial markets this is often used as a benchmark to evaluate an investment's performance against. This gives a "big picture" of the market.
What is an index?
True or False: You should wait to save $ for retirement until you have a career path and steady job you plan to be at for at least 5 years.
What is FALSE?
(The earlier you start the more $ you will be able to save for retirement! Even if it's just a few dollars at the beginning.)What should you do if you don't want to pay a fee you've been charged by your bank?
What is calling and convincing them to remove the charge?
Bonds use what type of interest?
What is simple interest?
The place where stocks are bought and sold.
What is stock market? (What is NASDAQ? What is New York Stock Exchange?)
This is a type of index which tracks the performance of the top 500 stocks traded on US stock exchanges.
What is the S&P 500?
What one thing will help you save the most $ for retirement?
What is STARTING EARLY?
What is the maximum credit score?
What is 850?
When you can't/don't pay back a loan, you are said to ________.
What is default?
What does “diversifying” mean in investing?
What is spreading your money across different types of investments and industries to reduce risk?
This type of investment is a basket of stocks, bonds, and/or other securities where multiple investors pool their money, and it is managed by a financial professional.
What is a Mutual Fund?
An employer-sponsored retirement savings account, where you pay tax when you take your $ out of the account/when you retire.
What is 401K?
This is how a poor credit score affects your credit, if you are trying to buy a car or a house.
What is a higher interest rate?
You bought a $6767 bond that pays interest annually, and the bond has a maturity date of 5 years. What is the face value of the bond?
What is $6767?
This is the most volatile/risky investment type we have learned about.
What is a stock?
A pooled investment that passively aims to replicate the returns of market indexes (aims to match the market).
What is Index Fund?
This type of retirement account has you pay tax when you put the $ into an account, so all your earnings grow tax-free!
What is a Roth IRA?
(Often seen when exploring the cost of a credit card or rate of return for a savings account.) This 3 letter acronym is the approximate yearly cost of borrowing money.
What is APR (Annual Percentage Rate)?
What is maturity date?
A distribution of a company's earnings to eligible shareholders is called __________?
What is a dividend?
This is a type of index that tracks the performance of 30 of the largest and most successful companies in the US.
What is Dow (Jones)?
What is FREE retirement savings MONEY you can receive from the company you work for called?
What is employee contribution match (for 401K)?
What is the most significant factor in determining your credit score?
What is payment history? (What is paying on-time? What is no late payments?)
Name two different types of bonds.
What are (any two): Municipal bonds, Treasury Bonds, Corporate Bonds (asset-backed or credit-backed), Agency Bonds?
What is P/E, and what does it mean in terms of a stock?
What is price per earnings ratio?
In simpler terms, it gives the relative value of a company's stock (by comparing the price per share to the earnings per share).
What are (any two): expense ratio, being "actively managed, financial professional trading more often than need/trying to beat the market
What is the difference between saving and investing?
Saving is putting money aside safely in a bank account for short term goals.
Investing is using money to buy stocks/bonds/other securities that can grow over time, but have
more risk.