Savings Basics
This is what PYF stands for.
DOUBLE JEOPARDY
What is Pay Yourself First?
DOUBLE JEOPARDY
This type of investment means you own part of a company.
What is a stock?
This is the chance that you could lose money.
What is risk?
People buy this to protect themselves from financial loss.
What is insurance?
A student keeps all their money in a savings account because they don’t want to lose any. Is this a smart or risky choice? Why?
What is smart for safety, but limits growth?
This is one short-term savings option that is insured by the FDIC.
What is a savings account?
This investment is basically an IOU with a set rate of return
DOUBLE JEOPARDY
What is a bond?
DOUBLE JEOPARDY
This is the money you earn from saving or investing (Your ___________ on the investment.).
What is return?
This type of insurance helps cover medical care and medicine.
What is health insurance?
A student invests all their money into one stock they saw trending online. Is this smart or risky? Why?
What is risky because there is no diversification?
Stocks, bonds, and mutual funds are examples of this kind of savings or investment option.
What are long-term options?
This investment is a pool of money used to buy a bundle of investments.
What is a mutual fund?
This is the general relationship between risk and return.
What is higher risk usually means higher possible return?
One advantage of health insurance is that it can help pay for this.
What are medical bills / hospital care / medicine?
A student reinvests their dividends instead of cashing them out. Is this smart or risky? Why?
What is smart because it helps grow their investment over time?
There are three primary things to consider when saving and investing. Name at least 2.
What are degree of risk, how easy it is to get your money, and rate of return?
This savings option usually has a fixed return for a set amount of time
What is a certificate of deposit (CD)?
This investing strategy means spreading money across different investments to reduce risk.
What is diversification?
One disadvantage of health insurance is that it can be this.
What is expensive / have deductibles / have limits?
A student avoids insurance because they think they won’t need it. Is this smart or risky? Why?
What is risky because unexpected costs could be very expensive?
This is the difference between short-term and long-term savings options
What is short-term means easier access sooner, while long-term focuses more on growth over time?
This is the main difference between a stock and a bond.
What is a stock is ownership, while a bond is a loan?
An investor might choose a high-risk investment because of this possible benefit
What is the chance of a higher return?
Why is auto liability coverage so important?
What is it minimizes your financial responsibility/exposure and helps protect your assets in the event of an accident.
A student chooses a mix of stocks and bonds instead of putting all money in one place. Is this smart or risky? Why?
What is smart because it spreads risk (diversification)?