Budgeting
The 50/30/20 rule means this.
What is spend 50% on needs, 30% on wants, and 20% on savings?
The FDIC was started by this president.
Who is FDR?
What is an ARM (adjustable-rate mortgage)?
A bond is defined as this.
What is a loan to a company or government that will be repaid at a specific time for a set amount of interest?
Working at a fast-food restaurant over the summer is probably this type of employment that we studied.
What is a job (not a career or vocation)?
You contribute $400/month to your retirement account. Is this an asset, a liability, income, or an expense?
What is an expense?
This type of account pays great interest and is very liquid, but it has a very high minimum balance.
What is a money market account?
Older people typically have better credit scores than younger people because of this.
What is having a credit history?
These are three defensive industries.
What are utilities, medicine, agriculture, household goods, etc.?
These are three rules to remember when investing.
What are (1) start early, (2) buy low/sell high, and (3) diversify?
The average American saves this percentage of his or her income.
What is 4%?
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The FDIC protects deposits up to this amount of money.
What is $250,000 per depositor?
You can lower your mortgage rate by paying for these up front.
What are points?
When looking for a mutual fund, you will want a low this.
What is an expense ratio?
This practice means investing the same amount of money every month instead of trying to 'time the market' and buy when stocks drop.
What is dollar cost averaging?
This is the term for a positive cash flow.
What is a surplus?
This is the most liquid type of bank account.
What is a checking account?
These are the five C's of credit.
What are capital, capacity, character, credit history, and collateral?
This type of mutual fund seeks to mirror the performance of things like the Dow Jones or the S&P 500.
What is an index fund?
This smart person called compound interest the 8th wonder of the world.
Who is Albert Einstein?
These colors are associated with deficits and surpluses?
What are red (deficits) and black (surpluses)?
Banks serve these three roles.
What are keeping money safe, providing credit/loans, offering financial advice, etc.?
These two types of bank accounts do not allow for payments to others.
What are saving accounts and CDs?
Some stocks pay out an annual percentage known as this.
This is the concept of having access to your money or assets.
What is liquidity?