Must know 1
An account held at a financial institution in which account owners deposit funds. Account owners can write checks on their accounts and use ATM cards or debit cards to access funds:
What is a Checking account
An account with a bank or credit union in which people can deposit their money for future use and earn interest:
What is a saving account
Cite an account taxed before withdrawal
Roth IRA or Roth 401(k)
At what age can you withdraw from a retirement account ?
ANY AGE
59.5 years old is recommended to avoid extra taxes.
The person who manages the plan:
What is the account holder
A record of your credit history. It can show lenders and others how you manage your financial responsibilities.
What is credit report
A number assigned to you indicating your ability to repay a loan.
What is a credit score
The act of resisting an impulse to take an immediately available reward in the hopes of obtaining a more-valued reward is called:
What is Delayed Gratification
Name at least 2 types of savings accounts.
401(k), Roth 401(k), IRA, Roth IRA, Health Savings Account (HSA), Pension...
The person who benefits from the plan
What is the beneficiary
An amount of money set aside, usually in an account, to cover unexpected expenses or a loss in income:
What is an Emergency Fund
How Much Should You Keep in Your Emergency Fund? (Months wise)
3 to 6 month of essential expenses
the process of setting aside income that is not spent for current consumption, often to achieve future financial goals or build financial security for unexpected events.
What is Saving
a long-term commitment to put money away and let it grow:
What is Investing
The 2 types of 529 Plans
What is Prepaid Tuition Plans and College Savings Plan
Cite at least 3 benefits of financial literacy
What website can you use to improve your financial literacy?
The addition of interest to the principal sum of a loan or deposit:
What is compound interest
A simple way to figure out how long it will take an investment to double given a fixed annual rate of interest:
What is the Rule of 72
The best time to contribute to a 529 Plan:
What is :
Yesterday
Today
Birth of a child
Reducing risk by allocating funds among a wide variety of investments and savings tools:
What is Diversification
When to start saving AND investing?
As Soon As Possible
A share of a company's net profits paid to people who own stock in the company is called
What is a Dividend
The price of using someone else's money. When people place their money in a bank, the bank uses the money to make loans to others. In return, the bank pays _____ to the account holder.
what is an Interest?
Cite 3 benefits from this plan:
The money grows federal tax-free
Anyone can contribute
The beneficiary can be changed at any time to another member of the beneficiary's family