BANKING
What are the two types of bank accounts?
Checking and saving
What is 50/20/30 Budget?
50% of net income to needs
20% to savings
30% to wants
What is a credit card?
Account that represents short term revolving loan.
What are 3 examples of insurance?
Auto
health
renters
What is bull market?
Increasing in trends in the stock market.
What are three functions of money?
Medium of exchange, unit of account, store of value.
What is loss aversion?
What is a credit score?
A number between 300-850 based on an individuals credit history detailed in a credit report.
What is health insurance?
Insurance that covers the cost of medical care, doctor visits, and prescription.
What is bear market?
Decreasing in trends in the stock market.
What are all the different types of savings?
Traditional
Online or high-yield
CD- certificate of deposit
Money market account
What is cognitive bias?
Systematic error in thinking
Mental Shortcut
Why is credit useful?
Convenience
Safety
Benefits
Large purchase
This part of your auto insurance covers damage to another persons car when you’re at fault in an accident.
Liability insurance
What is diversification?
Spreading risk over variety of asset classes.
What is “Bounced Check”
Check rejected by a bank for insufficient funds.
What are the different types of cognitive bias & debt?
Framing
Optimism
Payoff
Confirmation
What is a credit report?
A document with info about a person‘s credit activity and history
5 factors that determine auto insurance rates
1. Deductible
2. Make, model, year
3. Mileage you drive
4. Your driving record
5. Your personal info -age, etc.
2 types of retirement savings account
401K
IRA
Money is…
(criteria for money)
Durable
Portable
Divisible
Uniform
Limited
Accepted
What is anchoring bias?
Sticking with the first info you receive.
Who protects you?
CFPB-(agency)- Consumer Finance Protection Bureau
FCRA(law)- Fair Credit Reporting Act
What’s the difference between Medicare and Medicaid?
Medicare is for those over 65 years old
Medicaid is for those with very low income
How do funds work?
You’re buying shares in the fund, not individual stocks.