Money Basics
Money you earn from a job called?
What is income?
A plan for managing how you spend and save your money called?
What is a budget?
Account best for daily spending?
What is a checking account?
A tool that lets you borrow money up to a limit.
What is a credit card?
Using money to make more money over time.
What is investing?
Money you receive after all taxes and deductions are taken out?
What is net pay?
In a budget, what should you pay first—needs or wants?
What are needs?
Account that earns interest and helps you save?
What is a savings account?
Money borrowed that must be repaid with interest.
What is a loan?
Risk of investing?
You could lose money.
The difference between needs and wants?
Needs are essentials; wants are extras.
“Living within your means” means?
Spending less or equal to what you earn.
“Interest” when saving money?
The money the bank pays you for keeping money there.
Credit score used for?
To measure how likely you are to repay debt.
Spreading out investments to lower risk.
What is diversification?
Money that you owe to someone else called?
What is debt?
An example of a fixed expense?
Rent, car payment, or insurance.
Tool helps track withdrawals, deposits, and balances?
What is a check register or banking app?
APR stands for?
Annual Percentage Rate.
Difference between a stock and a bond?
A stock is ownership; a bond is a loan to a company/government.
FDIC insurance protect in a bank account?
Deposits up to $250,000 if the bank fails.
An example of a variable expense?
Groceries, gas, or entertainment.
Overdraft means?
Spending more than you have in your account.
If you only make the minimum payment on a credit card?
You pay more interest and stay in debt longer.
A group of stocks/bonds managed together to spread risk.
What is a mutual fund?