Budgeting
True or False: Budgeting is just about cutting out all fun spending.
False! Budgeting is about balance—fun is important too!
Known as free money, this is a company’s payout to shareholders.
What is a Dividend?
What’s the earliest age you can withdraw from a 401(k) penalty-free?
What is 59½ years old?
What does the acronym NYSE Stand for?
What is the New York Stock Exchange? (It is the most famous stock exchange in the world.)
True or False: Paying extra on your mortgage each month helps pay it off sooner.
True! Extra payments reduce the principal balance.
What’s a “rainy day” or emergency fund?
What is a fund for unexpected expenses like car repairs or doctor visits?
You’ve made $5,000 in stocks! What’s one way to reduce taxes on your gains?
What is holding the stocks for over a year for lower long-term capital gains taxes?
What’s the difference between a traditional IRA and a Roth IRA?
What is traditional IRAs are tax-deductible; Roth IRAs offer tax-free withdrawals?
This is the largest electronic screen-based equity securities market in the United States.
What is NASDAQ?
True or False: You always need 20% down to get a mortgage.
False! Some loans allow as little as 3% down.
Suppose you spend $1.25 on sodas every year. How much do you spend on sodas per year?
$1.25 * 365 days = $456.25 per year in total cost.
What’s “dollar-cost averaging” in investing?
What is investing the same amount regularly to reduce risk from market volatility?
You want to retire early. What’s one potential risk?
What is you might outlive your savings?
What is the meaning of ROI?
What is Return on Investment?
If your car loan is $20,000 at a 4% interest rate, how much interest will you pay in one year?
What is $800?
($20,000 × 0.04 = $800 in interest)
How much of your after-tax income should you ideally spend on housing?
What is 25 - 30 %
Give 3 examples of liquid assets
What is? ...cash, savings account, checking account, stocks, bonds
What does RMD stand for in retirement plans, and when does it start?
What is the Required Minimum Distribution, starting at age 72?
This score comes from a Bozeman, Montana company founded by Bill Fair and Earl Isaac in 1956.
What is FICO score?
What’s a balloon payment in a mortgage?
What is a large, lump sum due at the end of a loan term?
Explain the 50/30/20 rule
What is 50% needs, 30% wants and 20% savings or debt?
You’re about to invest in a company! What key things should you look for in their financial statements?
What is look for profitability, cash flow, and a solid balance sheet?
If you need £5,000 per month to fund your retirement lifestyle, calculate how much money you would need in your savings account in order to buy a pension (annuity). Assume a discount rate of 3%.
What is £1,186,946.91?
PV=5000×[(1−((1+0.0025)^−360)) / 0.0025]
This was the first index exchange-traded fund listed on U.S. exchanges.
What is SPY?
You have a 30-year mortgage for $200,000 with a 5% interest rate. What’s your yearly interest?
What is $10,000?
(Answer: $200,000 × 0.05 = $10,000 per year)