Income & Employment
Money you earn from a job or business is known as this type of income.
What is active income?
When you borrow money and agree to repay it with interest, you are using this financial tool.
What is credit?
This term describes having enough money to support your lifestyle, pay bills, and be free of debt.
What is financial security?
The possibility of losing money on an investment is referred to as this.
What is investment risk?
This retirement account allows you to contribute pre-tax money and defer taxes until withdrawal.
What is a traditional IRA?
This type of income is generated from investments, rental properties, or dividend-paying stocks without active work.
What is passive income?
This document shows your history of borrowing and repayment, maintained by credit reporting agencies.
What is a credit report?
A savings goal you plan to achieve within one year is classified as this type of goal.
What is a short-term financial goal?
This term describes the money you earn or gain from an investment.
What is return on investment (ROI)?
This employer-sponsored retirement plan allows employees to contribute pre-tax income with potential employer matching.
What is a 401(k) (or a 403(b))?
The amount of money you receive on your paycheck after taxes and deductions are removed is called this.
What is net income?
The total amount of money you owe to creditors is referred to as this.
What is total debt?
This is the type of fund you build to protect yourself against a potential job loss.
What is an emergency fund?
A strategy that spreads investments across different types of assets to reduce overall risk is known as this.
What is diversification?
This retirement account allows you to pay taxes upfront and withdraw money tax-free in retirement.
What is a Roth IRA?
This is what you call it when an influencer or content creator highlights a product in one of their videos.
What is affiliate marketing or sponsored content?
A high-cost lending option that charges extremely high interest rates and targets people in financial desperation is known as this.
What is predatory lending?
This term refers to the cost of something expressed in terms of what you give up to obtain it.
What is opportunity cost?
Generally, investments with higher potential returns come with this increased characteristic.
What is higher risk?
This is the minimum age at which you can withdraw money from a traditional IRA without incurring a penalty.
What is 59 and a half years old?
When an employer matches contributions to your retirement account, this is an example of this type of benefit.
What is a fringe benefit or employer match?
The legal process where a person is declared unable to pay their debts and seeks relief from creditors is called this.
What is bankruptcy?
A long-term financial goal typically spans this many years or more into the future.
What is ten years?
When you hold an investment for a long time, the power of this effect can turn small contributions into significant wealth.
What is compound growth?
This popular financial movement encourages people to invest aggressively in passive income to retire early, and stands for Financial Independence, Retire Early.
What is the FIRE movement?