Banking
What is the institution where you can open a Checking or Savings account
A bank
What do you call a plan for how to spend and save ur money?
a budget
What is credit?
the ability to borrow money now and pay it back later
What is the purpose of insurance
To protect you from financial loss
What is investing?
putting money into something to earn a return
What type of account earns interest and Saves money over time?
Savings account
What is the term for money you spend regularly, like a rent or a phone bil?
Fixed expenses
What do the call the number that shows how likely you are to repay borrowed money?
A credit score
What is the amount you pay every month for insurance coverage ?
A premium
What is a share of ownership in a company called?
A stock
What do you call the amount of money you have in your bank account
Balance
What is the behaviorAl bias where people prefer instant rewards over long-time benefits?
A present bias
What is common consequence of missing a credit credit card payment?
a late fee and a lower credit score
What is the amount you must pay out of pocket before your insurance kicks in?
A deductible
What is the term for spreading your money across different investments to reduce risk?
A diversification
What is the difference between credit union and a traditional bank?
the credit unions are member-owned and often offer lower fees
What do economists call the “next best alternative“ you give up when making a choice?
a Opportunities cost
What are the 3 mayor credit bureaus in the u.s
Equifax, experian, TransUnion
What type of insurance covers damage to your car in an accident you caused?
A collision insurance
What is the difference between a Roth IRA and a traditional IRA?
Roth-IRA’s are funded with after-tax money and grow-tax free, while traditional IRA’s use pre-tax money and are taxed later
What does FDIC insurance protect you from ?
losing all your money if bank fails (up to 25,000 per account)
What is the tendency to continue a behavior due to previously invested resources, even if it no longer makes sense?
The sunk cost fallacy
What is the rule of thumb for keeping your credit utilization ratio low?
to use less than 30% of your available credit.
What is the term for maximum amount an insurance company will pay in a policy period?
A coverage limit
What is the term for the risk of losing purchasing power over time due to rising prices?
An Inflation risk