Credit
Installment
What are the two ways to make money from stocks?
Buy/Sell for profit
Dividends
What is a high-yield savings account?
Savings account that has a higher interest rate than other accounts
Mr. Marshall had this color hair as a child
Brown
This type of credit involves open-ended credit limits with minimum monthly payments varying depending on usage
Revolving
Index funds try to ________ the market, while mutual funds try to _________ the market
Index- match
Mutual- outperform
What type of account would you use for regular spending purposes?
Checking
What's the difference between "variable" & "fixed" expenses? Provide one example of each.
Variable- changes
ex: gas, utilities, groceries
Fixed- stays the same
ex: rent/mortgage, car payment, phone bill
The wreck of the Edmund Fitzgerald occurred on this great lake:
Lake Superior
What is the biggest factor of your credit score?
Late/missed payments
Define a bond
Giving a loan to the gov't (or a corporation) that is paid back with interest
What's the main difference between a high-yield savings account and a regular savings account?
Higher interest rates with high-yield
Why is it difficult to budget with a part-time, hourly job?
Your income is variable, making it difficult to anticipate how much income you'll be working with each month
This famous mobster led the "Chicago Outfit"
Al Capone
What is a "term length"?
Length of the loan/credit
P/E ratio tells investors....
How much they'd need to invest (on average) to make $1 in earnings on a stock
Why would it make sense for a recent high school graduate to buy a used, older car in cash instead of taking out a loan for a newer model?
-no monthly payments
-less stress/concern over repairs
-potential for cheaper insurance (might not need full comprehensive coverage if the car is a beater)
What's the 50/30/20 rule?
50%- needs
30%- savings/debt
20%- wants
Pennywise the Dancing Clown is from which Stephen King book (and movie)?
IT
48-month car loan monthly payment: $350
60-month car loan monthly payment: $280
Why would someone want to go with the 48-month loan option?You will pay less in interest
(shorter term length = less interest paid)
Why should you diversify your investments?
Minimize risk
Assign the following actions with the correct corresponding accounts: Checking, Savings, High-Yield Savings, Bond, Stock
1. You're retiring soon, so you want to put your money somewhere you're guaranteed returns
2. You're saving up for a car
3. You're buying Chipotle for lunch
4. You have a longer-term savings account that you deposit 20% of your paychecks towards
5. You want to invest in Microsoft
1. Bonds
2. Savings account
3. Checking
4. High-yield savings account
5. Stock
What's the difference between net & gross income? Which one do we budget with?
Net- income AFTER taxes and deductions
Gross- income BEFORE taxes and deductions
We budget with NET INCOME.
Which U.S. President said this famous quote: "in any moment of decision, the best thing you can do is the right thing. The worst thing you can do is nothing"
Theodore Roosevelt