Budget
People use this tool to organize their money and avoid overspending
What is: Budget Spreadsheet
This type of insurance covers damage to your vehicle and others if you cause an accident.
What is Auto Insurance?
This financial instrument represents ownership in a company and may entitle the holder to dividends and voting rights
What is a stock?
a powerful financial concept that explains why starting to save in your 20s can lead to a much larger retirement balance than starting later, even with the same contributions
What is: Compound interest
__________ is a three digit number that represents your creditworthiness to lenders.
What is: Credit Score
You set aside money for unexpected expenses like car repairs- what is this called?
What is: Emergency Fund
The amount you must pay out of pocket before insurance starts paying.
What is a deductible?
This investment strategy involves spreading your money across different assets to reduce risk
What is diversification?
This age is the earliest you can typically withdraw money from most retirement accounts without paying a penalty
What is: 59½ years old
This major purchase typically loses about 20% of its value in the first year.
A car
Reducing spending in order to increase savings improves this.
Financial Health
This type of life insurance allows flexible premiums and adjustable death benefits while building cash value.
What is Universal Life Insurance?
When a stock price consistently falls for several months, the market is said to be in this type of market phase
What is a bear market?
This type of employer contribution is often described as “free money” because your company adds to your retirement account when you contribute
What is: Employer match
This is the only U.S. bill that has never been redesigned since it was first issued in 1862?
What is: The $1 bill
This budgeting technique allows you to keep up with recurring subscriptions or monthly charges
What is: Tracking Expenses
This Federal U.S. law allows individuals under age 26 to remain covered under their parents’ health insurance plans.
What is the Affordable Care Act
Rather than trying to beat the market, this type of fund simply mirrors the performance of a market benchmark like the S&P 500 by holding many of the same stocks.
What is an index fund?
This rule of thumb suggests you'll need roughly 70-80% of your pre-retirement income each year to maintain your lifestyle after you stop working
What is: the retirement replacement ratio
What is the typical length of the grace period after graduation before federal student loan payments begin?
What is: 6 months
Gail earns $4,000/month and saves $800. What percentage of income is being saved?
What is: 20%
A student with renters insurance has a $1,000 deductible and suffers $6,000 in covered damages after a fire. How much would the insurer typically pay?
What is $5,000?
This financial ratio compares a company’s total debt to its shareholders’ equity to measure financial leverage
What is the debt-to-equity ratio?
This financial principle states that your retirement portfolio should shift from high-risk assets to lower-risk ones as you age, often summarized by subtracting your age from 100 to estimate the percentage you might keep in stocks
age-based allocation rule
What U.S. law requires credit bureaus to provide consumers with one free credit report every 12 months?
Fair Credit Reporting Act