Personal Finance

What is a budget?

• A type of savings account

• A way to invest for retirement

• A fund for emergencies

• A financial plan that defines expenses for a period of time.

What is an emergency fund?

• A savings account set aside for unexpected situations.

• A way to invest for retirement.

• Something most people don't need, because emergencies are rare.

• An investment account that can grow over time.

Why should we INVEST instead of SAVE for retirement?

• Investing money can make it grow in the long term.

• Investing is safer than saving.

• Saving is too risky for retirement.

• Investing is more fun than saving.

What is debt?

• Money you have borrowed and need to pay back

• Money you make from working at a job

• Money you make from the government

• Taxes that you pay when you buy something

Tags

CCSS.RI.11-12.5

CCSS.RI.6.5

CCSS.RI.7.5

CCSS.RI.8.5

CCSS.RI.9-10.5

What is insurance?

• A service purchased to protect assets and income against financial loss.

• A type of savings account where you put aside money for emergencies.

• A type of investment account where you can buy shares of stock.

• A kind of taxes charged by the government.

If we're trying to fund an expense that's 15 years away (MORE than 3-5 years), should we save or invest?

• INVEST

• SAVE

This type of interest "creates a mathematical explosion," and it can make you wealthy over time, or keep you in debt for a long time.

• compound
• sinking
• annual

Cost of credit expressed as a yearly percentage 

• Mortgage
• Principal
• APR
• Finance company

401(k), IRA, and Roth IRA are all examples of a __________ account.

• Retirement
• College Savings
• Low Interest
• Stock

What does CD stand for when talking about investments?

• Calculated Dividend
• Certificate of Deposit
• Central Dollar
• Current Deposit