Savings and investing vocab

Front

Interest on principal + accrued interest.

Back

Compound interest

Front

Time for money to double when invested.

Back

Rule of 72

Front

Chance taken when investing.

Back

Risk

Front

Saving accounts can be easily converted to spendable money, so it is...

Back

Liquidity

Front

401K is a work-sponsored...

Back

Retirement plan

Front

Saving a portion of your monthly earnings as a discipline.

Back

pay yourself first rule

Front

A pool of money invested by professionals into stocks with medium risk.

Back

mutual finds

Front

Shares in a company represent part ownership.

Back

Stocks

Front

Account for unexpected expenses like car repairs, surgery, or a new roof.

Back

emergency fund

Front

Amount paid/earned for using money.

Back

Simple interest