Investing
What is Investing?
Investing is the process of buying assets that increase in value over time and provide returns in the form of income payments or capital gains.
What is Savings?
money tucked away in a safe, low-interest account.
What is Budgeting?
Budgeting is the process of creating a plan to spend your money.
What is Compound Interest?
"Interest on Interest"
How can too little risk affect your investing experience?
You will not make headway on your financial independence.
Is a Savings account used for near-term goals?
True or False
True
What are debts?
money that is owed or due
What is the 50-20-30 rule?
50% - Needs
20% - Savings
30% - Wants
What are the two ways that investors can make money from stocks?
Dividends and Trade Stocks
What two things are required for a savings account?
1. social security
2. ID with picture
An Example of a long term goal would be:
1. a annual vacation
2. saving for retirement
3. buying a used car
4.completing college.
Saving for retirement
What is 401k?
a employer-sponsored savings plan
What percent of 18-29 year olds are investing in the stock market?
About 41%
Where can you save your money? What kind of saving accounts?
1. Traditional Savings Account
2. Online Savings Account
3. Certificate of Deposit
4. Money Market Account
What are 5 major things to consider in your budget?
Housing, Utilities, Car, Gas, Groceries, Internet, Cell Phones.
What are the taxes subtracted from your gross pay?
1.Federal
2.FICA
3.County
4.State
What is a Brokerage Account?
A brokerage account is an investment account used to trade assets such as stocks, bonds, mutual funds and ETFs. They also give access to the stock market.
Where should you save 20% of your income?
college savings
emergency funds
What is the most important rule of budgeting?
50/30/20 budget rule
What are ETF's?
Exchange Traded Funds