Financial Lingo
What is compound interest?
It is interest earned on your original money plus previously earned interest, allowing savings to grow faster over time
Why is a credit card not the same thing as free money?
Purchases are borrowed money that you are responsible for repaying, and unpaid balances can accumulate interest
What is the term for money you earn from working a job?
What is the largest planet in our solar system?
Jupiter
What does APR stand for, and why is it important when choosing a credit card or loan?
Annual Percentage Rate; it helps show the yearly cost of borrowing money, including interest and certain fees
What is one major benefit of having good credit?
It can make it easier to qualify for loans, credit cards, housing, and potentially better interest rates
What is inflation?
The general increase in prices over time, which causes money to lose purchasing power.
Which country gifted the Statue of Liberty to the United States?
France
What financial term describes the risk that the value of an investment will decrease, potentially causing you to lose some or all of the money you invested?
Investment risk
What is a credit score?
A number that helps lenders determine how risky it may be to lend you money
What is diversification when it comes to investing?
Spreading your money across different investments to reduce the risk of losing too much from one investment
What is the only mammal capable of true sustained flight?
The bat
What does the term credit utilization refer to?
The percentage of your available credit that you are currently using
True or False: Closing an old credit card can sometimes affect your credit score
True. Closing an account can affect factors such as your available credit and length of credit history.
What is the difference between gross income and net income?
Gross income is what you earn before taxes and deductions; net income is what you actually take home after deductions.
What is the name of the ancient supercontinent that once contained nearly all of Earth's landmasses?
Pangaea
What do you call the original amount of money you borrow before interest is added?
Principal
What happens if you consistently make only the minimum payment on a credit card?
It can take much longer to pay off the balance and you may pay significantly more interest
What is the difference between good debt and bad debt?
Good debt can potentially help create long-term value or income, such as certain education or mortgage debt, while bad debt generally finances things that lose value or carries high interest, such as expensive credit-card balances.
Which element has the chemical symbol W?
Tungsten