🧠 Financial Concepts
The process of managing money to reach goals.
What is financial planning?
Investment managed as a group of stocks/bonds.
What is a mutual fund?
Determines paycheck withholding when starting a job.
What is a W-4?
Skill employers value for working with others.
What is communication/teamwork?
Unexpected expenses should be covered by this.
What is an emergency fund?
Money today is worth more because it can earn interest.
What is time value of money?
How investments are divided (stocks, bonds, cash).
What is asset allocation?
Shows yearly earnings and taxes.
What is a W-2?
Purpose of a cover letter.
What is to introduce and explain interest in a job?
Next best option you give up when choosing something.
What is opportunity cost?
The ability to buy goods decreases when this rises.
What is inflation?
Ability to handle risk in investments.
What is risk tolerance?
Total pay before deductions.
What is gross pay?
Helps build career connections.
What is networking?
Money growth over time through interest.
What is compounding / future value?
How much money can buy with rising prices.
What is purchasing power?
Higher than 1 means more volatile than the market.
What is beta above 1?
Money after taxes and deductions.
What is net pay?
Helps reduce financial stress and increase savings.
What is financial planning?
Spending plan for long-term success.
What is a budget?
The step where you compare different financial choices before deciding.
What is evaluating alternatives?
Compares stock price to company earnings.
What is the P/E ratio?
Money taken throughout the year for taxes.
What is withholding?
Real-world experience gained through work or service.
What are internships/volunteering?
A core reason financial planning matters long-term.
What is financial stability / reducing stress / achieving goals?