What is a Budget?
Risk + Investing Definitions
Banking + Insurance
Weird but True $$ Trivia
Other VOCAB
100
What 2 categories makes up the given periods of a budget?
Income and Expenses
100
Define Risk
The effect of uncertainty on objectives.
100
What do loans provide?
Increased buying power for customer's to improve their quality of life
100
What fast-food chain once created a “Billionaire’s Club” gold card that let members eat for free?
McDonald's
Warren Buffet and Bill Gates have one
100
Define Fixed and Variable Expenses
Fixed: costs that remain constant
Variable: costs that change based on lifestyle, usage or circumstances
200
After you budget, what is the most useful way to use the leftover money?
SAVE IT (savings in bank account or investment)
200
Define Mutual Funds
A fund managed by a company that includes a portfolio of stocks or bonds.
200
Who does the bank invest in?
The community
200
What small piece of everyday U.S. currency costs more to produce than its actual value?
Penny - costs 2.72 to make each one!
200
Define Principal
original sum of money invested
300
Or first quote of the unit: “Do not save what is left after spending, but spend what is left after saving.” Who said it?
Warren Buffet
300
Define Bonds
A type of loan in which you are the lender. You
loan money to the government or a corporation with a set interest rate and maturity date.
300
Fill in the blanks: Traditional banking involves accepting money from ___ and loaning it to ____.
Depositors + Borrowers
300
What is the most counterfeited bill inside the US
$20 bill
300
Define Diversified
an investment strategy that lowers risk by investing in a variety of stocks or bonds with varying levels of risk
400
Explain the purpose of a budget.
invaluable tool to help prioritize your spending and manage your money. No matter how much money you have, budgets provide an up-front, organized summary of income and expenses.
400
What is a pro and con of Stocks
Pro: Potential for higher returns over long term.
Con: No guarantee for additional money above your investment/you may lose your principal
400
What is the name of the U.S. government agency that insures deposits in banks and savings of up to $250,000?
FDIC (Federal Deposit Insurance Corporation)
400
What does ATM stand for
Automated Teller Machine
400
Define deductible (in auto insurance)
the amount of money you must pay out of pocket for repairs or damages before your insurance company covers the remaining costs.
500
HW Question: What challenges do you think people face when trying to stick to a budget?
Unexpected Expenses, Impulse Spending, Social Pressure, Inflation, Debt etc.
500
If you were saving for a house you hope to buy in five years, which of the five investment options would you prioritize?
How would your answer change if you were investing for retirement 40 years from now?
For 5 years - Bonds -- less risky
For Retirement - Stocks/Mutual Funds -- highest returns with solid diversification for growth
500
Deposits provide banks with capital for lending. Loans provides purchasing power for homes, business or personal investments. Businesses that receive loans can hire more workers, invest in production, and contribute to overall economic growth. As employment rises and businesses expand, people earn more income and save more money, leading to an increase in bank deposits. This restarts the cycle, allowing banks to continue lending and fueling further economic growth.
500
What U.S. state once printed its own wooden money during the Great Depression?
Washington
500
Define tariffs
taxes imposed on imported goods by a government to regulate trade, protect domestic industries, or generate revenue.