Economics
What you give up when you make a decision (the value of the next best alternative)
What is opportunity cost?
What is a checking account?
Money earned from working a job
Wage or salary
A plan for how you will use your money
Budget
The name of the third Harry Potter book
Harry Potter and The Prisoner of Azkaban
These motivate people to behave in a certain way
What are incentives?
This type of account earns interest and is used for storing money
What is a savings account
Total earnings before taxes and withholdings
Gross pay
A common budgeting rule that designates specific percentages of income to categories such as needs, wants, and saving/investing
50-30-20 rule
The three branches of the US Federal Government
Legislative, Executive, and Judicial
When demand increases, but supply stays the same, this happens.
Price increases
This protects your bank account deposits up to $250,000
Federal Deposit Insurance Corporation (FDIC)
This is your income after taxes and deductions have been taken out of your paycheck
Net income or take-home pay
When your expenses are greater than your income
Budget deficit (debt)
When people continue to invest time and money into something because of what they've already spent, even if it isn't a rational choice
Sunk cost fallacy
Economic system based on private ownership, profit motive, and competition
What is free market or capitalism
Fee charged when you spend more money than you actually have in your account
Overdraft fee
This form shows how much money you earned as well as a breakdown of taxes and deductions from your paycheck
Paystub
The concept that you should treat savings and investing as a requirement in your monthly budget, just like paying your bills
Pay yourself first
The capital of Spain
Madrid
Measurement of the total value of goods and services produced in a country
Gross Domestic Product (GDP)
Not-for-profit bank owned and managed by its members, allows for lower interest rates and better loan terms
Credit Union
Income earned without actively working (ex. investments or rental income)
Passive income
The budgeting principle that assigns every dollar a "job"
Zero-based budgeting
The treaty that officially ended World War I on June 28, 1919
The Treaty of Versailles