Saving vs. Investing
Saving is for ______-term goals. Investing is for ______-term goals.
short; long
The rule of thumb when it comes to splitting up how to spend your money is the __/__/__ Rule.
50/20/30
A traditional savings account will provide a very low _________ rate compared to other types of savings accounts.
interest
When putting together your budget, you should always base it off of your ____ pay.
net
Gross Pay is the income earned ______ taxes/etc... are taken out; Net Pay is the income earned ______ taxes/etc... are taken out.
Investing, on average, provides ___% annual growth; Saving, on average, provides ___% annual growth.
When it comes to my savings account, I should always have ___ to ___ ________ worth in case I lose my job.
3 to 6 months
It is important to look out for any ______ that you may have to pay for savings accounts.
fees
On your paystub, all of the things that get subtracted from your gross pay are known as...
Deductions
If you don't have enough money right now to buy something, you can use a ______ _____ to purchase it so you can enjoy the product now.
credit card
Inflation causes your money to lose __________ _______.
purchasing power
If I choose to save $3000 this year instead of buying coffee every morning, my giving up of coffee is known as...
Opportunity Cost
This type of account "locks" your money up for a certain period of time.
Certificate of Deposit
The 30% of the 50/20/30 rule should be dedicated to...
Discretionary Wants
When you only have a bunch of materialistic things, you are probably _____; if you have money working for you in "behind the scenes," you are probably _______.
rich; wealthy
There is essentially no _____ involved with saving, while investing could lead to loss of money.
risk
Setting mini-goals is a good way to save money more easily. If I want a $3,000 item in two years from now, how much do I need to save per day in order to have enough money to buy it?
$4.11
With a CD, you will get a _______ interest rate than a traditional savings account.
higher
If you make $4000 net pay each month, and your expenses total $4000 each month, you are living...
paycheck to paycheck
"Buy two, get the third for free!" If you only wanted to buy one, you will actually end up spending more money if you buy two (instead of saving money). What tactic is the store using on you?
Twisted Heuristics
I get a 4% raise at work. Inflation is 8%. My real wage went UP/DOWN ___%.
Down 4%
If my gross pay is $5,000, and I take home 80% as my net pay... according to the 50/20/30 rule, how much should I be allocating for mandatory expenses?
$2,000
This type of savings account is a hybrid account (has features of a checking account - debit card, check-writing privileges).
Money Market
Expenses that can change from month to month are known as __________ expenses.
variable
Your money is protected at the bank up to $__________ per type of account because of ______ Insurance.
$250,000; FDIC