Personal Finance
Refers to all the financial decisions an individual or family must make in order to earn, budget, save, and spend money over time.
What is Personal Finance?
The concept of putting aside money over time.
What is saving?
A type of shady investment that causes all the investment money to raise to the top.
What is a pyramid scheme?
This person said there are two things guaranteed in life: death and taxes.
Who is Ben Franklin?
A written cash-flow plan.
What is a budget?
A obligation of repayment owed by one party to a second party; in most cases repayment is the amount loaned plus interest.
What is Debt?
Interest paid on interest previously earned.
What is compound interest?
a risk-management technique that mixes a wide variety of investments within a portfolio.
What is Diversification?
A tax applied when a consumer buys a product. (does not apply to food).
What is a sales tax?
Occurs when money is withdrawn from the bank account and the available balance goes below zero.
What is an overdraft?
A fee paid by a borrower to the lender for the use of borrowed money. Usually applied when the lender fails to pay their debts in time.
What is interest?
persistent rise in the price of goods and services over a period of time
What is inflation?
refers to how easy investments can be bought and sold.
What is liquidity?
A tax applied when an employer gives their employee their paycheck. Applies to the state, federal, and local level.
What is income tax?
This card is connected to your bank account, usually needs a pin to operate.
What is a debit card?
What is a credit card?
The value of money changes from today to the future.
What is the time value of money?
an individual plan, tax-favored, that uses compound interest to grow your retirement for you.
What is an IRA/ROTH/Individual Retirement plan?
Flat 12.4% tax rate applied to your income for social security/medicare
What is FICA?
This is a four-digit number you need in order to access your bank account from an ATM.
What is a PIN?
A fund in which there should be at least $500 set aside for emergencies.
What is an emergency fund?
Retirement savings plan offered by a corporation to it’s employees. Employers match how much you put into it.
What is a 401K?
A report created by an employer that signifies how much income was taken out for taxes each year.
What is a W2?
The concept where you get your monthly paycheck and then spend it all until it equals 0 or in the negatives. Leaving nothing in savings.
What is living paycheck to paycheck?