Why’d You Buy That?
The amount of money you take home after taxes, not the number that looked better on the job posting.
What is net income?
The possibility that an investment may lose value or perform worse than expected.
What is risk?
Putting money into different investments instead of just one.
What is diversification?
A general rise in prices over time.
What is inflation?
If conflict disrupts oil supply, this price often rises first in the public mind.
What is the price of gas?
A plan for where your money should go before it mysteriously disappears.
What is a budget?
The money gained from an investment.
What is return?
Owning this is usually riskier than owning a broad index fund.
What is a single company stock?
Inflation reduces this, which is why the same money buys less over time.
What is purchasing power?
When conflict interrupts trade routes and shipping, this business system gets disrupted.
What is the supply chain?
ent, insurance, and a car payment usually belong in this expense category.
What are fixed expenses?
The amount of time an investor plans to leave money invested.
What is time horizon?
Diversification lowers this type of risk tied to one company or one bad outcome.
What is concentration risk?
One reason people invest is to try to protect against this.
What is inflation?
Higher shipping and energy costs can push up prices through this type of inflation.
What is cost-push inflation?
Eating out, random snacks, and “I was just looking” purchases usually fall into this kind of expense.
What are variable expenses?
In general, higher potential return usually comes with more of this.
What is higher risk?
True or false: diversification guarantees profit.
What is false?
If prices rise but your income does not, your budget usually feels this way.
What is tighter?
If outside conflict causes prices to rise and markets to shake, economists call that a negative this.
What is a shock?
This financial habit means paying yourself first instead of waiting to see what money is left over.
What is saving first?
A student saving for a car in 12 months would usually want a shorter one of these than someone investing for retirement.
What is a time horizon?
This kind of fund is commonly used as a more diversified option than buying one stock.
What is an index fund?
A young adult worried that savings will lose value over time is really worried about this effect of inflation.
What is declining purchasing power?
Your tracker asks students to observe a good, commodity, or index before, during, and after conflict to study this broad economic idea.
What is how external events affect prices?