Savings
What is a piggy bank.
A container for saving money, often in coins
What is a mutual fund.
An investment vehicle made up of a pool of money from many investors to purchase a diversified portfolio of stocks and bonds.
What is a want.
Something that is desired but not essential, like toys or video games.
What is the purpose of health insurance.
provide financial protection against the high costs of medical care.
What is financial literacy.
the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing, to make informed decisions about money.
What are stocks.
represent ownership in a company
What is a bond.
A fixed income investment where an investor loans money to an entity for a defined period at a fixed interest rate.
What is an interest rate.
the cost of borrowing money, expressed as a percentage, or the return earned on savings or investments.
Why is auto insurance mandatory.
protect individuals involved in accidents, ensuring financial responsibility for damages and injuries caused by at-fault drivers.
What is the difference between a checking and savings account
for everyday transactions and easy access to funds, while a savings account is primarily for saving money and earning interest
What is an emergency fund.
Money saved to cover unexpected expenses.
What is diversification.
The practice of spreading investments across various financial assets to reduce risk.
What is a credit score.
a numerical representation of your creditworthiness, reflecting your ability to repay debts
What types of life insurance are there.
Whole Life Insurance
Universal Life Insurance
Variable Life Insurance
How can inflation affect purchasing power.
Inflation erodes purchasing power because as prices of goods and services rise, the same amount of money buys fewer goods and services, meaning each dollar is worth less.
What is asset allocation.
how you divide your investments (like stocks, bonds, and cash) to manage risk
What is a market risk.
the potential for financial losses due to fluctuations in market prices, interest rates, and other economic variables impacting investments.
What is the impact of late payments on your credit score.
Late payments negatively impact your credit score
What does liability insurance cover.
protects you financially if you're responsible for someone else's injuries or property damage.
What are the benefits of understanding personal finance.
helps you to manage your money so you can live the lifestyle you want, now and for years to come
What is the importance of an Emergency Fund.
allowing individuals to cover unexpected expenses like medical bills or job loss without resorting to high-interest debt
What does ROI stand for.
Return on Investment
What are the long-term effects of student loans.
reduces consumer spending, business growth, and homeownership
What is renters insurance.
protects your personal belongings and provides liability coverage in case of accidents or injuries on your rental property
Define APR.
Annual Percentage Rate, and it's the yearly cost of borrowing money, expressed as a percentage, that includes not only the interest rate but also any associated fees like origination fees or closing costs.