Personal Finance Review

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What is a Checking Account?

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A checking account is a type of bank account that allows for easy access to funds for daily transactions, typically using a debit card or checks.

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What is Savings?

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Savings refers to money that is set aside for future use, often kept in a savings account to earn interest.

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When is the best time to start planning for retirement?

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The best time to start planning for retirement is as early as possible, ideally in your early 20s.

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What is the highest cost credit payback strategy?

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Making the minimum payment (3% of your credit card balance) every month with an occasional late payment leads to the highest overall cost.

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How do stockholders make money?

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Stockholders make money by selling their stock for more than they paid for it.

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What is a Budget?

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A budget is a plan that outlines expected income and expenses over a specific period, helping individuals manage their finances.

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What is Interest?

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Interest is the cost of borrowing money or the earnings from savings, typically expressed as a percentage.

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What is the purpose of a Savings Account?

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A savings account is designed to hold money that is not intended for daily expenses, allowing it to earn interest over time.

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What is the difference between a Checking Account and a Savings Account?

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A checking account is used for daily transactions, while a savings account is used to save money and earn interest.

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What does it mean to make the minimum payment on a credit card?

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Making the minimum payment means paying the smallest amount required by the credit card issuer to keep the account in good standing.