Rule of 72
This rule helps you estimate how long it takes to double your money at a fixed interest rate.
Rule of 72
Income
Buying stocks means you own a small piece of this.
company
We present the project on this day.
Thursday
When you use a credit card, you’re doing this with money.
borrowing
If your investment grows at 6% per year, your money will double in approximately how many years?
12 years
The “50-30-20” rule recommends spending 20% of your budget on this.
savings and debt repayment
This term means spreading out your investments to reduce risk.
diversification
The goal of this project
to create the most efficient investment plan with the income given
True or False: Credit cards use your own money, not borrowed money.
False
What is the formula used in the Rule of 72?
72 divided by the interest rate
True or False: A budget should include only monthly expenses.
False
True or False: Investing is the same as saving money in a bank account.
false
We start templates on this day.
tuesday
This kind of card pulls money directly from your bank account.
Debit Card
Using the Rule of 72, an interest rate of 12% will double your investment in how many years?
6 years
This type of expense stays the same every month (like rent).
Fixed expense
The higher the potential return, the higher the potential (blank)
Risk
Materials are provided on this day
Tuesday
What kind of bank account helps kids save money with a parent’s help?
Savings Account
True or False: The Rule of 72 works best with high interest rates over 20%.
False
If you spend more than you earn, this will happen to your savings.
decreases or you go into debt
A mutual fund pools money from many investors to do what?
Invest in different assets like stocks or bonds.
(True or False) Parents will be there for the final project presentation.
True
This country was the first to use paper money over 1,000 years ago.
China