SIRM

To automatically save a specified amount from a paycheck for future use.

• Pay Yourself First

• Compound Interest

• Opprotunity Cost

• Savings Account

The next best alternative given up when making a financial choice.

• Simple Interest

• Compound Interest

• Savings Account

• Opportunity Cost

The amount of money originally invested.

• Interest

• Principal

• Mutual Fund

• Invest

To commit money to gain a profit or earn interest.

• Interest

• Invest

• Risk

• Principal

An IOU issued by a company, municipality, or the federal government in exchange for a loan from an investor that will be repaid with a set rate of return.

• Stock

• Bond

• Invest

• Risk

A share of a corporation sold to the public.

• Money Market

• Bond

• Stock

• Certificate of Deposit

An interest bearing account where people put money for future use.

• Opportunity Cost

• Simple Interest

• Compound Interest

• Savings Account

Risk is the possibility of financial lost or physical harm.

• True

• False

Simple interest is interest on the principal AND the accumulated interest on a deposit or a loan.

• True

• False

Mutual funds are a collection of stocks or bonds of various corporations.

• True

• False