Categories
What is "saving"?
Putting money away for later.
The earlier the better! (Time in the market beats timing the market)
Which type of investment account do you get through your employer? (if they offer it)
401 (k)
What is interest?
Interest is money paid in exchange for borrowing money
The average American owes how much in credit card debt? (nearest thousand)
$7,226
What is investing?
A budget is...
a plan for my money
What type of retirement account can you open as soon as you have earned income?
Roth IRA
What is compound interest?
Compound interest means it is paid on the principle as well as previous interest earned.
What is the current average buying price of a car? (nearest thousand)
$48,000
What is spending? (2 categories)
Using money for goods/services: Needs and wants
What does it mean to have a zero-based budget?
It means that when you subtract all of your budget line items from your income, it equals zero.
What does it mean to have "an employer match?"
It means that your employer matches how much you put into your 401(k), typically up to a certain amount.
*Credit Cards*, student loans, car loans, mortgages
What is the average monthly salary in Volusia County? (nearest thousand)
$4,000
What is a sinking fund?
Systematically saving money for a future, predictable expense.
When would it benefit you to keep money in a traditional savings account?
What does the "roth" part mean?
Tax-free (as long as you wait until retirement age)
What are the pros of a 15-year mortgage (rather than a 30-year)?
You pay off the loan more quickly, more goes toward the principle early on, and you get a lower interest rate.
What constitutes an emergency expense?
Something that is unexpected and necessary
When would it benefit you to use a high yield savings account?
For money that you don't plan to touch for a while
What is the priority for investment vehicles?
Match beats Roth beats traditional
What are the pros of a high yield savings account?