Banking
What are two key differences between a checking account and a savings account
Spending vs. saving
What do we call a written or digital plan that tracks how much you earn and how much you spend?
A budget
What three-digit number helps lenders decide if you’re trustworthy to borrow money?
Credit score.
What do people buy to protect themselves financially against unexpected losses or accidents?
Insurance
What is a stock?
Company ownership.
What banking service helps prevent your debit card from being declined if you don’t have enough money?
Overdraft protection
What is a type of expense that stays the same every month, like rent or a car payment?
Fixed expense
What is one major factor used to calculate your credit score?
Payment history.
What’s the amount you pay before insurance helps?
Deductible
What does diversification do?
Reduces risk.
What organization insures your bank deposits and how much are they insured for?
FDIC, $250,000
What budgeting strategy tells you to save money as soon as you get paid before spending?
Pay yourself first
What’s the main difference in how credit cards and debit cards take money from your account?
Credit borrows, debit spends.
What covers car damage from a crash?
Collision
Roth vs. traditional IRA, what’s different?
Tax timing
Why is it important to compare your personal records to your bank statement each month?
To catch errors.
What economic mistake happens when people keep investing time or money because they already invested a lot?
Sunk cost fallacy.
What is one safe way to build good credit over time using a credit card?
Pay in full monthly
Term vs. whole life insurance, what’s the difference?
Time vs. lifetime.
What does “risk vs. reward” mean?
Higher risk, higher reward.
What type of interest adds both to the money you deposit and the interest you’ve already earned?
Compound interest.
What is the name of the bias where people fear losing money more than they enjoy gaining it?
Loss aversion
What happens to your credit score if you use too much of your available credit?
It goes down
How does raising your deductible affect premiums?
Lowers them.
What is dollar-cost averaging?
Regular investing.