Budgeting
A plan for how to spend and save money.
What is a budget?
A loan you give to a company or government that pays you back with interest.
What is a bond?
A share of ownership in a company.
What is a stock?
The ability to borrow money and pay it back later.
What is credit?
A bank account where you can save money and earn interest.
What is a savings account?
Money that you spend on things like bills, groceries, and fun activities.
What is an expense?
Money earned on savings or investments, or the cost of borrowing money.
What is interest?
What happens when you buy a stock?
You own a small part of the company.
Money that you owe to someone else.
What is debt?
Money saved for unexpected expenses.
What is an emergency fund?
Money that you earn or receive, such as from a job or allowance.
What is income?
What happens to interest rates when the Federal Reserve buys bonds?
What is "Interest rates go down"
A place where stocks are bought and sold.
What is the stock market?
The extra money you pay when you borrow money.
What is interest on a loan?
Putting money into something to make it grow over time.
What does 'investing' mean?
When money leaves the economy through savings, taxes, or spending on imports? (hint: Circular Flow Model)
What is a leakage
Why might the Federal Reserve sell bonds during high inflation?
What is "to reduce the money supply and lower inflation"
What is one risk of investing in stocks for retirement?
What is "Stocks can go up and down in value"
Why is it important to pay off your credit card balance each month?
What is "to avoid interest charges and debt."
What is diversification in investing?
What is "it means spreading your money across different investments to reduce risk."
When money is added to the economy through government spending, investments, or exports.
What is an injection
What is a treasury bond, and how does it differ from a corporate bond?
What is "a treasury bond is safer, a corporate bond can earn more but has more risk."
How does buying stocks help the economy and GDP
What is "It gives companies money to grow and create jobs"
How does having too much debt affect your budget?
What is "it can make it hard to pay for needs and save money."
Earning interest on your interest, which helps your money grow faster.
What is compound interest?