Budgeting Basics
This is the term for money you receive, such as paychecks, gifts, or allowances.
What is income?
This type of account is best for everyday spending and debit card use.
What is a checking account?
This term refers to the money a person earns before taxes and deductions.
What is gross income?
Buying a small piece of ownership in a company means you are buying this.
What is a stock?
A company that is traded on NYSE or NASDAQ.
What is a public company?
A plan for how you will spend and save your money each month is called this.
What is a budget?
This FDIC-insured account earns interest and is good for storing money long-term.
What is a savings account?
A written record of money going in and out of your account is called this.
What is a bank statement?
This investment type is considered less risky because it represents a loan to a company or government.
What is a bond?
This major U.S. stock index includes 30 of the largest American companies, such as Apple, Walmart, and McDonald’s.
What is the Dow Jones Industrial Average (DJIA)?
Money you must spend, like rent or insurance, is called this type of expense.
What are fixed expenses?
This 3-letter acronym is added to your balance each month or year as a percentage.
What is APR (Annual Percentage Rate)?
This financial statement shows your assets, liabilities, and your overall financial worth.
What is a net worth statement?
This term describes spreading your money across different investments to reduce risk.
What is diversification?
What are these companies called in the stock world:
What is the "Magnificent Seven" ?
When your expenses are higher than your income, you have this.
What is a budget deficit?
Money a bank pays you for keeping money in an account is called this.
What is interest?
This government agency insures deposits in U.S. banks up to $250,000.
What is the FDIC?
A group of stocks and bonds packaged together and managed by professionals is called this.
What is a mutual fund?
This online retailer and is one of the largest companies in the world.
What is Amazon?
This budgeting method divides your income into Needs (50%), Wants (30%), and Savings (20%).
What is the 50/30/20 rule?
These certificates lock your money for months or years in exchange for higher interest.
What are CDs (Certificates of Deposit)?
This financial term describes how easily an asset can be turned into cash without losing value.
What is liquidity?
This famous principle suggests your investment grows faster because interest builds on interest.
What is compound interest?
This electric vehicle and clean-energy company
What is Tesla?