Savings
Savings are a good source for Emergencies because they are more ____ than other sources of investments due to how quickly and easily it can be converted into cash.
What is Liquid
This word refers to assets purchased with the goal of providing additional income from the asset itself but with the risk of loss.
What is Investments?
This type of investment allows the investor to lend money to a company or government, getting their money back on top of the interest acquired until the maturity date.
What is Bonds?
This term refers to goods, services, and/or money received in exchange for a promise to pay back a definite sum of money at a future date
What is Credit?
If my savings account had $18,235 in it, and I had made $3,142 off of interest, what was my Principal for the account?
What is $15,093?
It is generally suggested that you should save up to at least this many months' worth of expenses in emergency savings.
What is 6 months?
This term refers to the rise in the general level of prices over time. This poses a risk for any investments that you make, as the return on the investment might not be higher than the rise in prices.
What is Inflation?
This type of investment gives you ownership of residential or commercial property, with hopes of selling it to someone for a higher price.
What is Real Estate?
These companies keep a record of a consumer's account history, and use this information to generate Credit Reports.
What are Credit Report Agencies (CRA's)
If your credit score was 400 with FICO and 600 for VantageScore, you would be considered to have this kind of credit score.
What is a low credit score?
When you give up spending money on something to save it for something else, that thing you are giving up in exchange for that future purchase or security is referred to as what?
What is the trade off?
This term refers to the Total return on investments expressed as a percentage of the amount of money saved.
What is the Rate of Return?
This type of investment gives you a share of ownership in a company, making your money back through either dividends or capital gains.
What are stocks?
This is a mathematical number created to help evaluate the risk with lending a consumer money, reflective of their prior credit history.
What is Credit Score?
If you save $3,000 and make a return of $200 on your investment, what is your Rate of Return?
What is 6.67%?
This specific value of money argues that money available at the present time is worth more than the same amount if received in the future.
What is the Time Value of Money?
Compared to changes in spending, money earned from investments is usually used to pay for these type of goals.
What is Long Term Goals?
This type of investment presents a high risk, but allows you to make money, assuming you did truly invest in the next big thing, or player.
What is Speculative Investments?
This type of credit is when a borrower repays a specified amount of equal payments over a period of time, usually for payment on a house or car.
What is a Closed-end credit (Installment Credit)
$3,000 of expenses a month means that you should save how much money according to the PowerPoint?
What is $18,000?
This phrase refers to earning interest on your interest, making more money over time if you leave your savings account alone.
What is Compounding Interest?
This term describes a portfolio that has spread its investments across multiple types of investments, in hopes to avoid massive losses if one of the investments turns out to be a massive failure.
What is Diverse/Diversify?
This type of investment is when you give money to a company that uses their funds to to invest in a diversified portfolio of stocks and bonds for you.
What is Mutual Funds?
Compared to other Inquiry requests, this is the only scenario where inquiry into your Credit Report can negatively affect your credit score.
What is Seeking additional credit?
If you had to pay 15% Interest rate on your Car Loan your your monthly payment of $300, you would be paying this much in Interest on top of the $300.
What is $45?