Savings
What is saving mean?
Accumulation of excess funds by intentionally spending less than you make
What is credit?
Allowing goods and services to be used now with a promise of payment in the future.
an accounting entry that results in either an increase in assets or a decrease in liabilities on a company’s balance sheet
What does invest mean?
invest means to put money or resources to use for a purpose or profit
What is opportunity cost?
refers to what you have to give up to buy what you want in terms of other goods or services
Give an example of a short-term savings option
Savings account
Money Market
CDs
What is interest?
the price you pay to borrow money or the cost you charge to lend money
If I deposit money into my checking account what will happen?
My account will increase because a deposit is increasing the balance in my account
What does IRA stand for?
Individual Retirement Account
Many Americans live...?
Give an example of a long-term savings option
Bonds
Stocks
Mutual Funds
Retirement accounts (401 K, IRA )
What is a credit report?
a statement that has information about your credit activity and current credit situation
If I withdrawal money for my checking account what will happen?
My account will decrease because a withdrawal is decreasing the balance in my account.
Give me one example of how you can invest your money
stocks
bonds
IRAs
mutual funds
real estate
This type of account is used when you have an unexpected occurrence happen in your life such as dental surgery.
emergency fund
What are the five ways to save?
Saving accounts and CDs
Bonds
Stocks
Mutual Funds
Money Market
What is a credit score?
A credit score is a three-digit number that rates your creditworthiness. FICO scores range from 300 to 850
If I spend more money than I have in my checking account, I will receive what?
an overdraft fee
Investments are important to building:
For your future net worth
Money used to pay off education-related expenses, such as college tuition, room and board at the university, or textbooks, that you will have to pay back.
Loan
The rate you will be charged if you carry a balance on your credit card.
Interest Rate known as APR (Annual Percentage Rate)
a payment card that deducts money directly from your checking account.
Debit Card
Stocks are:
A share of ownership in a company
How many months should you save for emergencies?
3-6 months