Savings
What is an emergency fund?
Money set aside to cover unexpected expenses or emergencies.
What does “stock” mean?
Ownership in a company.
What is a budget?
A plan for how you’ll spend and save your money.
What does “generational wealth” mean?
Wealth passed down from one generation to the next.
What is interest?
The extra money you pay when borrowing, or the extra money you earn when saving or investing.
What is an automatic transfer?
When money moves automatically from checking to savings.
What is compound interest?
Earning interest on both your original money and the interest it earns.
What does “live below your means” mean?
Spend less than you earn.
Name one asset you could pass down someday.
A house, business, or investments.
What’s the difference between a credit card and a debit card?
A credit card borrows money from the bank; a debit card uses money directly from your account.
How many months of expenses is recommended to save?
About 3–6 months of living expenses.
How does investing help build wealth over time?
Your money grows through returns and compounding.
What is a financial priority?
Something most important to spend or save for, like rent or debt.
Why is insurance important?
It protects you and your family from financial loss.
What is a good credit score range?
Typically between 670–850 is considered good to excellent.
True or False: A savings account earns interest.
TRUE
What is a 401(k)?
A retirement savings plan offered by employers.
Name one strategy for sticking to a budget.
Use cash envelopes or set spending limits.
What is credit and why does it matter?
Credit is borrowed money you repay later it affects loans and interest rates.
What is APR?
APR stands for Annual Percentage Rate it’s the yearly cost of borrowing money, including interest and fees.
Name one benefit of opening a high-yield savings account.
It earns more interest than a regular savings account
Stocks vs. Bonds: Which is typically higher risk?
Stocks
Name one budgeting method
The 50/30/20 rule 50% needs, 30% wants, 20% savings.
What is a will?
A legal document stating who gets your assets when you die.
How much of your credit limit should you use each month?
Stay below 30% of your limit to maintain good credit health