Banking
What are the two types of bank accounts?
Checking and Savings
What is a cognitive bias?
A systematic error in thinking; a mental shortcut.
The ability to buy things and pay later.
What is the meaning of insurance?
Contract for financial protection from risk of loss.
What is a risk of investing?
You can lose all of your money.
What does it mean when your checking account overdrafts?
It means you have a negative bank balance.
What is a budget?
A way to balance income, expenses and financial goals for a specific length of time.
What is the principal when it comes to loans?
The amount of money borrowed.
What is an actuary?
A professional who analyzes risk and calculates premium needed to cover potential loss payments.
What is an ETF?
Exchange Traded Fund
Which of these 2 are FDIC insured?
- Checking or Saving
Both!
Name the four types of budgeting strategies.
50/20/30 Budget, Pay Yourself First, Zero-Based Budget, and Envelope Budget.
What is the exact range number of your credit score?
300-850.
What are auto insurance coverage components? (Name at least 3)
Liability, Collision, Comprehensive, PIP, Uninsured motorist.
What are two ways to invest?
Active and Passive
How long should your emergency fund save for?
3 - 6 months of living expenses.
Disposition bias is based on?
Selling assets that have increased value.
Name a company that creates credit reports.
Equifax, Experian, or TransUnion.
What are the five factors that determine auto insurance rates? (Name at least 3)
Deductible, make model year, mileage you drive, your driving record, and your personal information
What are the two types of retirement savings accounts?
401k and IRA
What are the 3 functions of money?
What category do the following things belong to?
Rent, Food, Healthcare, and Education
Expense Categories
Name two factors that affect your credit score.
Payment history, credit utilization, credit history length, types of credit, new credit/ inquiry.
What does HMO mean and what type of health plan is it?
Health maintenance organization-in-network only.
A type of mutual or exchange traded fund that tracks the performance of a market index.