Budgeting
Budgeting helps you to...
There wasn't an answer given so determine if you agree with their answer
Name the two most common banking accounts
Checking and Savings accounts
What is the difference between a debit and a credit card?
A debit card is money you have placed in an account and a credit card is money you are borrowing that can accrue interest if not paid back
When should you start saving for retirement?
NOW
Name one example of investing
Stocks, bonds, mutual funds, IRA, CD
A good budgeting app you can download
Mint
Name three benefits of keeping your money in the bank
Security, interest earned, easy access, direct deposit
Name two pros and cons of having a credit card
Cons: can borrow too much, accrue late fees, damage credit
Pros: build credit, get rewards, pay later, emergency protection, fraud protection
What does IRA stand for in "Roth IRA"?
Individual Retirement Account
Explain why you be losing money by keeping money in a piggy bank for extended periods of time
You are losing the opportunity to make money by investing it
A fixed expense is...
An expense with a set amount that does not change often
Financially speaking, name three wants and three needs
wants- coffee, snacks, entertainment
needs-rent, insurance, utilities
What is the only official site directed by federal law to produce free credit reports?
What is life insurance?
Insurance that pays out a sum of money either on the death of the insured person or after a set period of time.
What is the difference between an IRA and a Roth IRA
An IRA you put in money untaxed and take out money that is taxed. In a Roth IRA you put in money taxed and take out money that is untaxed
Disposable income is calculated by
subtracting expenditure from income
What is the difference between an online and traditional bank?
24/7 phone service vs in person operating hours; mobile deposit vs bank deposit; online management/transfers; fast vs slow processing
All I need to pay on my credit card is the minimum and I will not owe interest. True or False?
False. Any amount still on the credit card at the end of the month will accrue interest.
What are two basic types of retirement plans?
401(k)- an employer sponsored plan
IRA- a personal retirement plan
The portion of a company's profits regularly paid out to shareholders is called a:
Dividend
The best way to prepare for unexpected expenses is to:
A) Start an emergency fund with 3-6 months of expenses
B) Get a low interest rate credit card
C) Get a loan
A) Start an emergency fund with 3-6 months of expenses
What gains more interest?
A) CD
B) Savings account
C) Index Fund
C) Index fund
True or False: Filing for bankruptcy includes student loans
False
What percent of income, on average, should people save for retirement?
15%
Explain why mutual funds carry less risk than individual stocks.
A mutual fund can be managed by a professional and can be done in smaller investments than stocks.