What does financial literacy mean?
Financial literacy is the confident understanding of concepts including saving, investing and debt that leads to an overall sense of financial well-being
What does the T in SMART goals stands?
Time- based
How do we calculate for net profit?
revenue minus expenses
sale price minus cost price
On the Supply and Demand curve, when price is low the supply is....... and the demand is.....
Supply low
Demand high
What do you call a share of ownership in a Corporation/ company?
Stock/ shares
Explain why being financially literate would be beneficial in the real world
- banking
- budgeting
- getting a loan
Define opportunity costs
The value/ cost of the next best choice
Explain the difference between saving and investing
Saving is low risk low returns, longer to growth wealth over time
Investing is riskier. Not guaranteed to make money. Spending money to make money
Provide all 5 types of investments
Stocks
real estate
mutual funds
saving deposits
collectibles
What does the acronym ASX stand for?
Australian Securities Exchange
What happens to stock in a bull market?
The stock does well
What is the difference between short- term and long- term goals?
Short- term is 12months or less
Explain the relationship between risk and return when it comes to investing
high risk high return
low risk low returns
If your savings are compounded quarterly, how many times is it compounded in a year and how many months is in a quarter?
4 and 3 months
How can we tell whether a company is a public or private?
pty ltd and ltd
What happens to stock in a bear market?
The stock drops
Explain assets and liabilities
An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit
A liability is something a person or company owes, usually a sum of money
What are the two types of interest that can be earnt or charged?
Simple and Compound interest
In real estate, explain the term 'equity'
Equity is the difference between money borrowed/ owed and the market value of the property.
What was the address of property 2 in your worksheets?
12/6 FIFTH AVENUE, BURLEIGH HEADS
When we retire, we depend on our superannuation. Explain what is superannuation and its purpose
Superannuation is paid by your employer.
It is not a tax.
Ensures everyone has money when they stop working. Eases pressure for the government and their spending
The acronym SMART goals stands for?
Specific Measurable Achievable Relevant Time-based
What is the formula for return on investment
Net profit / total investment x 100
Provide 5 different types of portfolios
- Defensive
- Growth
- Income
- Balanced
- Value
What was the name of the website, used to look up companies on the ASX
listcorp