Vocabulary
The best definition of "Saving"
Setting aside money for short term or emergency needs
The type of interest only earned on the original principal
A Rise in prices that reduces buying power
What is Inflation
Shares of ownership in a company
What are stocks?
Who is the greatest athlete in the history of the world?
Tom Brady
Putting money into assets with the goal of long erm growth, usually with a risk
Interest earned on the principal AND on previously earned interest
What is Compound Interest
The Index that measures the average change in prices consumers pay
What is the CPI Consumer Price Index
What is Market Cap
What was the First Video ever posted on Youtube called?
What is a "Savings account" Used for
Short term goals and emergencys
Which grows money faster simple or compound interest
Compound interest
When inflation goes up, This happens to the value of money
It decreases, $ Purchasing power lowers
One difference between saving and investing
What movie was the first movie to gross over 500 Million dollars world wide on its opening weekend?
Starwars (1977)
A bank product that requires leaving money untouched for a set period in exchange for interest
What is a CD
How does compound interest make savings grow over time?
Stacking interest accelerates growth over time
How does inflation affect savings accounts with low interest rates?
Why does investing typically over higher long term returns than savings
Greater the risk the greater the reward
What is the only animal that can not Jump?
an Elephant
Loans you give to the government that earn interest over time
Using the Rule of 72, How long will it take money to double at 8% interest?
72/8= 9 years
Why do investors care about the CPI?
Helps them Evaluate Economic trends and estimate inflations impact on returns
Explain how inflation influxes stock investing decisions
Investors choose assets expected to outpace inflation?
What is the only food that NEVER Spoils?
Honey