Risk
This investment tool is considered low risk and is often used to save for short-term goals
What is a savings account?
This type of account offers the lowest return but is great for storing emergency funds
What is a savings account?
This investment tool is ideal for short-term financial goals, like a vacation
What is a savings account?
I’m a low-risk account where your money earns interest and is insured by the FDIC
What is a savings account?
This type of account is taxed on contributions now but allows tax-free withdrawals later on in retirement
What is a Roth IRA?
Individual stocks fall into this risk category, as their value depends heavily on company performance.
What is high risk?
Investing in individual stocks has the potential for this level of return
What is high return?
Government bonds are best suited for these lengths of financial goals
What are medium or long term?
This type of investment could make you part-owner of your favorite fast-food chain, even if you still have to pay full price for fries
What are individual stocks?
Contributions to this retirement account are often matched by employers
What is a 401(k)?
Commodities like gold and crops are considered this level of risk due to price volatility
What is high risk?
Certificates of Deposit (CDs) typically offer this level of return compared to savings accounts
What is medium return?
This type of investment is most effective for long-term goals, such as retirement savings
What is an index fund?
I pool money from investors to track a market index like the S&P 500
What is an index fund?
This type of account is used to save for education expenses and offers tax benefits
What is a 529 Plan?
Government bonds are typically associated with this level of risk
What is low risk?
Index funds, known for tracking market performance, offer this level of return over the long term
What is medium to high return?
If your goal is to buy a ticket for a flight to space in 20 years, this type of long-term investment might help you get there
What are index funds?
I’m a financial product where you lend money to the government in exchange for interest payments
What are government bonds?
This flexible account allows you to invest in stocks, bonds, and other assets, but without tax advantages
What is a standard brokerage account?
This investment is known for being high-risk and high-reward, but if you had invested $10 in it in 2010, you might have become a millionaire by now
What is cryptocurrency?
If you owned a cow, this type of investment could allow you to profit from rising milk prices
What are commodities?
This investment tool locks up your money, so you can't touch it until a specific future date, like a financial time capsule
What is a certificate of deposit (CD)?
I’m a high-risk investment where you speculate on the price of physical assets like oil or gold
What are commodities?
This type of custodial account allows minors to hold investments until they reach adulthood
What is an UGMA or UTMA account?