Budgeting
This type of expense stays the same every month
What is fixed expense?
BONUS: List three examples!
What is a three digit number that provides a snapshot of your overall credit health?
BONUS: What are the score ranges and what is a good score?
Checking accounts are for frequent, daily transactions with lower interest and higher transaction limits. Savings accounts are for safety and growth so they typically have higher interest rates and sometimes limited monthly withdrawals.
This is an investment and business strategy that spreads capital across various assets, industries, or markets to reduce exposure to any single risk.
What is diversification?
This institution is the central bank of the United States, established in 1913 to create a stable, safe, and flexible monetary system. It manages U.S. monetary policy to promote maximum employment and stable prices, supervises financial institutions, and acts as a lender of last resort.
What is the Federal Reserve?
BONUS: What is are the current fed rates?
What is an emergency fund?
This is the amount of money a credit card company allows you to borrow at any given time.
What is a credit card limit?
This is the original amount of money deposited into a savings account, upon which interest is calculated.
What is principal?
List 2 reasons for ETF investing.
Diversified portfolio, transparency, easily tradeable, low cost, no minimum investment
BONUS: List three ETFs
This is the name of the spaceship currently traveling around the moon.
What is the Artemis II?
BONUS: Can you name the woman on the ship?
50% of your income goes to needs, 30% for wants, and 20% for savings
List 3 benefits of having a good credit score.
This IRA allows you to take out the money you contributed at any time without taxes or penalties, but not the earnings
What is a Roth IRA?
List 5 different assets.
BONUS: What is the most liquid asset you listed?
Higher gas prices for transportation, higher plane costs, higher shipping costs
This term describes the tendency to increase spending as income rises, making it harder to build wealth over time
What is lifestyle creep?
BONUS: How do you avoid it?
Payment history, amounts owed, length of credit history, credit mix, and new credit
BONUS: What percentage is each factor weighted?
Explain the difference between a traditional and a Roth IRA
Roth IRAs offer after-tax contributions and tax-free withdrawals, while traditional IRAs offer pre-tax contributions and taxable withdrawals.
What are two different places you can start an investment account?
Schwab, Fidelity, Robinhood, Vanguard
This company is currently in the process of an IPO, which is anticipated to be the largest in history
BONUS: What is the target valuation?
This tax form is sent by your college or university, and it reports tuition paid during the year, allowing students to claim education tax credits up to $2500.
What is the 1098-T form?
List three steps you can take to improve your credit score.
Keep credit utilization low, don't close old accounts (length of history!), set up autopay
BONUS: What credit utilization percentage is generally recommended?
You deposit $1,000 into a savings account with a 5% annual interest rate, compounded monthly, for 10 years. Calculate the final balance.
1000(1+0.05/12)^120 = 1647.01
List the two major stock exchanges.
NYSE and NASDAQ
Bonus: Where is the Texas Stock Exchange opening?
The March unemployment rate came in at this level.