Money Basics
A plan for managing income & expenses.
What is a budget?
A share of ownership in a company.
What is stock?
A number representing your creditworthiness.
What is a credit score?
The process of starting and running your own business.
What is entrepreneurship?
Wealth passed down from one generation to the next.
What is generational wealth?
The total value of your assets minus your liabilities.
What is net worth.
A loan made to a company or government in exchange for interest.
What is a bond?
Lower interest rates on loans and credit cards.
Name a benefit of good credit.
A document outlining business goals and strategies to achieve them.
What is a business plan?
Money or assets passed to heirs after someone’s death.
Define an inheritance.
Savings set aside for unexpected expenses.
What is an emergency fund?
A pool of money from multiple investors used to invest in securities.
What is a mutual fund.
Paying off the smallest debts first to build momentum.
What is the "snowball method?"
Office space, equipment, and marketing are commonly associated.
What are three common startup costs.
Preparing for the transfer of assets after death.
What is estate planning?
At least 20%.
What is the percentage of your income generally recommended for your savings?
Spreading investments across different assets to reduce risk.
What is "diversification."
It increases the total amount you repay over time.
What is interest.
Sources of income for a business.
What are "revenue streams."
A legal arrangement where assets are managed by a trustee for beneficiaries.
What is a trust?
Earned, Passive, Portfolio
What are the three types of income.
Interest earned on both the principal and previously earned interest.
What is compound interest?
What does paying bills on time and reducing credit card balances lead to?
What is improved credit scores?
Expanding operations to increase revenue without a corresponding increase in costs.
What does "scaling a business" mean?
Investing in real estate, starting a business, and saving for education.
What are three ways to build generational wealth?