Banking
What is Withdrawal
Taking money OUT of an account
What is a budget?
A way to balance income,expenses, and financial goals for a specific length of time
What is a principal?
amount of money borrowed
What is a premium?
The amount you pay to buy an insurance policy.
What is a stock?
A share of ownership in a company
What are the 2 types of bank accounts
Checking & Savings
What is a cognitive bias?
Systematic error in thinking
Mental shortcut
What is a credit report?
A detailed record of your credit history, including accounts and payment behavior
What does life insurance provide ?
A payout to beneficiaries when the insured person dies
What is Social security?
A government grogram that pools contributions from current workers to then provide retirement support benefits to those who are eligible.
What are the three functions of money?
Medium of exchange
unit of account
store of value
What are the Popular budgeting strategies?
The 50/20/30
Pay yourself First
Zero-based Budget
Envelope Budget
What is an emergency fund?
Savings set aside for unexpected expenses like car repairs or medical bills
What is a renters insurance for ?
It covers your belongings in a rented home in case of theft, fire, or other damages.
What are ways to reduce Investment Risk?
Long time horizon
Mix of types of companies
Spread buys over time
What is different from a debit and credit card?
A debit card pulls money directly from your bank account, a credit card borrows money to be paid later
What are the expense categories? (7 answers)
Rent
Transportation
Food
Health
Education
Clothes
Entertainment
What are hard and soft credit inquiries?
Credit Inquires: pull from database
Hard:
credit, loan application
lowers score
requires permission
Soft:
Just lookin- credit report
Doesng lower scoreWhat happens when you have reached your health care deductible and out-of-pocket maximum?
The insurance company pays all covered costs for the rest of the year, with no annual limit.
What are the Fund Categories and what do they consist off?
By sector/Industry-Technology,healthcare/transport and food
By region/country- SE asia,Europe
By size/stage
What is the purpose of a certificate of deposit and differ from a regular savings account?
A Certificate of Deposit locks money for a set of time at a higher interest rate, savings accounts allow easier access with typically lower interest
When do you use a zero based budget and what is it?
A zero based budget is every dollar of income assigned to specific expense, it leaves balance of $0 and anticipate all expenses. This is used when you want to allocate every dollar of your income to a specific purpose.
What is the impact of a hard inquiry on your credit report?
It may slightly lower your credit score and remains on your report for up to two years
why would someone choose a high deductible health plan?
It offers lower premiums and the option to pair it with a health savings account
What is a compound interest and why does it work for investors?
There is interest earned on both the original investment and the interest previously earned, which accelerates growth over time.