SIRM 2

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

• Compound interest

• Opportunity Cost

• Simple Interest

• Savings Account

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

• Opportunity Cost

• Pay Yourself First

• Compound Interest

• Savings Account

The amount of money originally invested.

• Invest

• Premium

• Principal

• Interest

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

• Opportunity Cost

• Compound Interest

• Savings Account

• Simple Interest

the possibility of financial loss or physical harm.

• Premium

• Invest

• Risk

• Stock

Interest that is paid only on the original principal.

• Compound Interest

• Simple Interest

• Savings Account

• Opportunity Cost

A contract that outlines coverage plans and protects a person against financial loss or damage.

• Compound Interest

• Insurance Policy

• Savings Account

• Opportunity Cost

A business that provides money-related services.

• Savings Account

• Simple Interest

• Interest

• Financial Institution

Money paid out of pocket before insurance covers the remaining costs.

• Deductible

• Mutual Fund

• Principal

• Opportunity

Interest on the principal and the accumulated interest on deposit or a loan.

• Opportunity cost

• Simple Interest

• Savings Account

• Compound Interest