Saving
What does PYF stand for?
Pay yourself first
Essentially an IOU. Does not represent ownership in a company.
Bond
What type of insurance covers eyecare?
Medical/ health insurance
Invest
To commit money to gain a profit or earn interest.
What is the defenition for opportunity cost?
the next best alternative given up when making a financial choice ($20 to the movie or $20 to save).
Fractional ownership in a company, prices can change daily.
Stocks
Who is more likely to have to pay more for car insurance? A 16 year old or a 30 year old?
16 year old
Financial institution
A business that provides money related services.
What are some advantages to saving our money?
- For emergencies
- For the future (college or other areas)
- For things you may want now that you can't afford
- Other?
Savings accounts are what type of risk (low, medium, or high)?
Low risk
What homeowner will likely have a higher home insurance?
1. A house in the east coast built directly near the ocean.
2. A house built in the midwest on a plain (very flat land).
A house in the east coast built directly near the ocean. Susceptible to flood damage or other natural disasters.
What is a deductible or co-pay?
Money paid out of pocket before insurance covers the remaining cost.
What percentage should you PYF?
10%
A fee recieved or paid for the use of money.
Accidents, sickness, weather disasters are all examples of?
Risks
The defenition of pay yourself first is:
To automatically save a specified amount from a paycheck for future use.
How can you PYF? How can you save money, even if it's just a dollar or two?
- Put money aside in a savings account or other savings options
- Spend less on non-essentials
- Other?
What type of risk is a mutual fund (low, medium, or high)?
All three!
What is the defenition of risk?
The possibility of financial loss or physical harm
Principal
The amount of money originally invested.