Vocabulary
What is Account Balance?
a. Money coming out of your account.
b. Total amount of money that is in the account at a given point in time.
What is Account Balance?
b. Total amount of money that is in the account at a given point in time.
What does saving mean?
a. The process of setting money aside until a future date instead of spending it today.
b. The process of setting money aside to pay interest rates.
What does saving mean?
a. The process of setting money aside until a future date instead of spending it today.
What is the rule of 72?
a. A formula used to help people estimate how long it will take to double their money at a certain expected interest rate.
b. A formula used to help people estimate how long it will take their bills to grow overtime.
What is the rule of 72?
a. A formula used to help people estimate how long it will take to double their money at a certain expected interest rate.
What is the types of savings account where the interest rate is very low(You don't earn to much money from the bank)?
a. Traditional Savings Account
b. Money Market Savings Account
C. Certificate of Deposit (CD)
What is the types of savings account where the interest rate is very low(You don't earn to much money from the bank)?
a. Traditional Savings Account
True or False: Short Term goals can be accomplished within a year.
True or False: Short Term goals can be accomplished within a year.
TRUE
What is Compound Interest?
a. Interest that stays the same.
b. Interest that grows overtime.
What is Compound Interest?
b. Interest that grows overtime.
True or False: Your money is secured in a savings account. Is protected by your bank.
True or False: Your money is secured in a savings account. Is protected by the federal Deposit Insurance Corporation.
FALSE
True or False: To use the rule of 72 you have to divide 72 by the annual interest rate to find the total years.
True or False: To use the rule of 72 you have to divide 72 by the annual interest rate to find the total years.
TRUE
What is the type of savings account that the minimum balance is from $1,000 - $10,000?
a. Traditional Savings Account
b. Money Market Savings Account
c. Certificate of Deposit (CD)
What is the type of savings account that the minimum balance is from $1,000 - $10,000?
b. Money Market Savings Account
True or false: Medium Term goals can be accomplished in 10 years.
True or false: Medium Term goals can be accomplished in 10 years.
FALSE
What do we call money coming INTO your account?
a. Deposit
b. Withdrawal
What do we call money coming INTO your account?
a. Deposit
True or False: When you put your money in a savings account it helps you have control over your money.
True or False: When you put your money in a savings account it helps you have control over your money.
TRUE
Find the solution using the rule of 72.
Doug invested $2,500 into a Certificate of Deposit earning 6.5% interest. How long will it take to double Doug’s investment?
Find the solution using the rule of 72.
Doug invested $2,500 into a Certificate of Deposit earning 6.5% interest. How long will it take to double Doug’s investment?
72/6.5 = 11 years
What is the type of savings account that "locks" for a period of time for your money to grow?
a. Traditional Savings Account
B. Money Market Savings Account
c. Certificate of Deposit
What is the type of savings account that the minimum balance is from $1,000 - $10,000?
c. Certificate of Deposit (CD)
How long can it take a long term to get accomplished?
a. 1 month to 1 year
b. 1 year to 5 years
c. 5 years to 10 years
How long can it take a long term to get accomplished?
c. 5 years to 10 years
What is future value?
a. How much your money is worth now.
b. How much your money is worth in the future.
What is future value?
b. How much your money is worth in the future.
What type of interest does most savings accounts have?
a. Simple interest
b. Compound interest
What type of interest does most savings accounts have?
b. Compound interest
Find the solution using the rule of 72
The average Stock Market return since 1926 has been 11%. According to the Rule of 72, how often will an individual’s investment double in that time?
Find the solution using the rule of 72
The average Stock Market return since 1926 has been 11%. According to the Rule of 72, how often will an individual’s investment double in that time?
72/11 = 6.5 years
True or False: You don't have to make sure to have emergency savings just in case something unexpected happens.
True or False: You don't have to make sure to have emergency savings just in case something unexpected happens.
FALSE
Is this item considered a need or a want: The latest iphone.
Is this item considered a need or a want: The latest iphone.
WANT
What does investing mean?
a. The process of setting money aside to increase wealth over time.
b. The process of setting money to pay bills.
What does investing mean?
a. The process of setting money aside to increase wealth over time.
Yes or no: Is your bank going to pay you an interest rate for leaving your money in the savings account?
Yes or no: Is your bank going to pay you an interest rate for leaving your money in the savings account?
YES
Find the solution using the rule of 72
Jessica has a balance of $2,200 on her credit card with an 18% interest rate. Her credit card company doesn’t require a minimum payment on the balance (unheard of) and does not assess any late charges (also unheard of). If Jessica chooses not to make any payments on her outstanding balance, how long will it take for her balance to double?
Find the solution using the rule of 72
Jessica has a balance of $2,200 on her credit card with an 18% interest rate. Her credit card company doesn’t require a minimum payment on the balance (unheard of) and does not assess any late charges (also unheard of). If Jessica chooses not to make any payments on her outstanding balance, how long will it take for her balance to double?
72/18 = 4 years
If I want an account that is not easy to access and "locks" my money to be able to save as much money as I can, which account should I choose?
a. Traditional Savings Account
b. Money Market Savings Account
c. Certificate of Deposit (CD)
If I want an account that is not easy to access and "locks" my money to be able to save as much money as I can, which account should I choose?
c. Certificate of Deposit (CD)
Is this item considered a need or a want: Shelter.
Is this item considered a need or a want: Shelter.
NEED