Economic Principles
Tommy couldn’t fix their car this month because he couldn’t afford it. Tommy had to ride the bus to work instead.
This is an example of the economic principle...
Scarcity Forces Tradeoffs
A budget is...
a plan for spending over a certain period of time
This type of interest gives savers interest on the principal and prevoiusly deposited interest
Compound Interest
The initial amount put into an investment by the investor is referred to as the..
Principal
The maximum amount of credit available for a particular account is called the...
Credit Limit
Toby always rushes to their next class, rather than hang out with their friends in the hall, because he is afraid of getting a a detention for having too many tardies.
This is an example of the economic principle...
Incentives Matter
Your rent is an example of which type of expense, fixed or variable
Fixed Expense
This type of account comes with checks and a debit card, which allow the owner to spend money directly from the account. These accounts do not offer interest.
Checking Account
Known as one of the most risky investments. This investment operates as a means to bail out struggling companies. If the company recovers from their hard financial situation, the investor will gain a substantial interest payment
Junk Bond
This factor makes up the second largest percentage of your credit score at 30%.
Credit Utilization/Debt Level
Tamia had $100 left over at the end of the month. She considered buying the concert tickets that she has been wanting, but instead decided to put the money into her retirement account to be reponsible.
This is an example of the economic principle...
Costs vs. Benefits
A variable expense is an expense that...
changes from month to month
This type of account comes with many of the same access privileges as a checking account (debit card, checks,etc.), but pays the account holder an interest rate that is higher than the typical savings account.
Money Market Account
This type of investment is one of the safest ways to invest in the stock market, because the investors money is managed by a professional and pooled together with other investors to diversify the investment. This type of account can also be invested in other assets, like bonds.
Mutual Fund
Jerry just applied for a new credit card and a car loan this month. He noticed that his credit score went down because of the credit score factor...
Recent Inquiries
Tanya stayed up late playing video games with her friends. The next morning she slept through her alarm and missed her bus. Now she has ruined her streak of perfect attendence.
This is an example of the economic principle...
Future Consequences Count
Putting money away for future uses is...
Saving
The percentage that determines how much the bank will contribute to a savings account (or other similar account) is know as the...
Interest Rate
This type of retirement account is better for young investors, because it allows them to invest their money into this account after it has been taxed and then withdraw the money tax-free after retirement age.
Roth Individual Retirement Account
The least amount of money that a borrower is allowed to pay each month on their credit card is know as the
Minimum Payment
Theodore Tar'a'vias Trent Thompson's mom told him to open an IRA when he was in his early 20s, but he wanted to spend his money on fun things. Now, Theodore Tar'a'vias Trent Thompson is 65 years old, and he cannot afford to retire.
This is an example of the economic principle...
Future Consequences Count
Buying assets that you hope will increase in value over time is...
Investing
This type of account is an agreement made between a saver and a bank, in which the saver allows the bank to hold money for an agreed upon amount of time in exchange for a set interest payment at the end of this time period.
Certificate of Deposit
This investing option is an agreement made between an investor and the government, in which the investor allows the government to hold money for an agreed upon amount of time in exchange for a set interest payment at the end of this time period.
Municipal Bond
One reason that it is important to have a good credit score is...
It will help you qualify for loans, decrease your interest rates on loans, and decrease the amount of money that you will pay in total o your loans.