The Terms
A plan you make to track how much money you earn and how much you spend.
What is a budget?
A safe place to put your money so you don't have to carry cash around.
What is a bank?
Putting your money into things like stocks or real estate, hoping it will grow over time
What is an investment?
The monthly payment you make to a landlord to live in a house or apartment that you do not own.
What is rent?
This is the general name for a safety plan you buy to protect your money if your car crashes or your house catches fire.
What is insurance?
Money you earn from working a job or running a business
What is income?
A plastic card that takes money directly out of your bank account the moment you buy something.
What is a debit card?
Buying a tiny piece of ownership in a company, like Apple or Disney
What is a stock or a share? (Either would be right)
The massive, long-term loan you take out from a bank specifically to purchase a home or property.
What is a mortgage?
This is the regular monthly bill you have to pay the company just to keep your coverage active
What is a monthly payment?
An expense that changes from month to month, such as your grocery bill or entertainment costs.
What is a variable expense?
This financial metric ranges from 300 to 850 and is used by lenders to judge how likely you are to pay back borrowed money on time.
What is credit score?
This financial term describes the entire collection of investments—such as stocks, bonds, cash, and real estate—held by an individual or an institution.
What is a portfolio?
The financial gap between what your home is currently worth on the market and how much you still owe on your home loan.
What is home equity?
Before you buy a policy, the company gives you this personalized price estimate to show you what your coverage might cost.
What is a quote?
This is a dedicated pool of easily accessible cash kept strictly to cover completely unplanned, urgent events like a sudden job loss or a medical related issue.
What is an emergency fund?
This is the penalty fee a bank charges your account when you attempt to spend more money than you actually have available in your checking balance.
What is an overdraft fee?
This is the term for a marketplace where prices are actively falling or expected to fall, usually driving down investor confidence.
What is a bear market?
The upfront cash payment a homebuyer must pay at the time of purchase, usually calculated as a percentage of the total property price.
What is down payment?
This is the specific amount of money you have to pay out of your own pocket for a repair before the insurance company pays for the rest.
What is a deductible?
This financial metric represents the percentage of your take-home pay that you manage to keep after all of your monthly expenses are completely paid off.
What is a savings rate?
This specific type of savings account locks your money away for a fixed period of time (like 12 months) in exchange for a guaranteed, higher interest rate.
Name at least the acronym for credit
What is Certificate of Deposit (CD)?
This tax term describes the profit you make when you sell an investment asset for more than the original purchase price
What is capital gain?
The legal process where a lender takes control of a property because the borrower has completely failed to make their mortgage payments.
What is foreclosure?
This is the designated person or family member you choose to receive the payout money if you pass away with a life insurance plan.
What is a beneficiary?