Saving & Investing
Setting aside money for future use.
What is saving?
A rise in the general price levels of goods and services.
What is inflation?
Borrowing money with the agreement to pay it back later.
What is a loan?
The amount of money you pay to a lender for loaning you the money.
What is interest?
A financial plan used to organize income, expenses, and savings.
What is a budget?
Putting money into something that can increase or decrease in value over time.
What is investing?
The possibility that an investment may lose value.
What is risk?
A number that helps lenders measure how risky it may be to lend someone money.
What is a credit score?
One place for you to store your important financial records and documents.
Yes
Expenses that stay the same amount each month.
What are fixed expenses?
Shares of ownership in a company that can change in value quickly.
What are stocks?
The interest rate after subtracting inflation from the stated interest rate.
What is the real interest rate?
A type of credit that allows repeated borrowing up to a certain limit.
What is open-end credit?
One of the Five C's of Credit that refers to a borrower's payment history and reliability.
What is character?
Expenses that can change in amount from month to month based upon usage.
What are variable expenses?
Investments that generally have lower risk and involve lending money to an organization or government.
What are bonds?
The value of the next-best option given up when choosing one investment over another.
What is opportunity cost?
A type of credit in which a specific amount is borrowed and repaid over an agreed period.
What is closed-end credit?
The fraudulent use of someone's personal information, which can cause financial damage.
What is identity theft?
The difference between money coming in and money going out.
What is cash flow?
Spreading money across different investments, such as stocks, bonds, and real estate, to reduce risk.
What is diversification?
The relationship between the possibility of losing money and the potential return of an investment.
What is risk versus reward?
An asset used to secure a loan that a lender may take if the borrower fails to repay.
What is collateral?
A legal process generally considered a last resort for people who cannot repay their debts.
What is bankruptcy?
The total value of a person's assets minus their liabilities.
What is net worth?