Saving
easily access your money by writing checks or using a debit card or ATM machine to pay for purchases or withdraw cash
What is a checking account?
Anything that reduces the amount of your available earned income
What is an expense?
The act of using your money to purchase assets, increasing the value of those assets, of achieving financial goals over a period of time
What is Investing?
Spreading investments across different types of assets and risk level
What is diversification/diversify?
The money that remains after taxes and other elected fees are subtracted from gross income
What is net income?
The money you put in the bank
what is the Principal?
The degree to which you have money to buy goods and services
What is spending power?
A form of agreement to lend money and get it back with specific terms
What is a bond?
The second step in the process of investing
what is assess risk tolerance?
A person who owns and operates a business
What is an entrepreneur?
Keeping some of your money for later instead of spending it all right away
What is saving?
Something you desire to accomplish that has an amount of money attached to it
What is a financial goal?
When you buy and sell financial instruments like stocks, bonds, or commodities with the aim of making a profit
Involves trading contracts for physical goods
What is commodity?
Someone who works for themselves instead of others
What is self-employment?
A quick math trick to figure out how long it takes to double your money when you're earning interest from a savings account
What is the Rule of 72?
The value that is given up when a person chooses one option over another
What is opportunity cost?
A platform where people and institutions buy and sell various financial assets
What is the a financial market?
the organization or company that lends money for a loan
what is a loan provider?
an outline of information regarding the employees gross income and all deductions that were made to calculate their net income
What is a paystub?
An institution where you can open a checking or savings account that is not-for-profit, member owned, and may require a membership fee
What is a credit union?
A way of earning income through interest and other methods not involving labor
What is an investment?
This is the profit when the value of your investment goes up and you sell it
What is capital gain?
What must be paid to the lender and is determined by the balance owed?
What is interest?
A government program that provides financial support to workers who have reached retirement age
What is social security?