Personal Finance Exam Review

A popular savings rule of thumb in which 50% of your income goes towards necessities, 20% goes towards saving and debt repayment, and 30% goes towards flexible spending

• Rule of Savings

• 50-20-30 Rule

• 50-50 Rule

A savings certificate with a fixed interest rate and maturity date, holding the saver's money until the CD fully matures

• High-Yield Savings Account

• Certificate of Deposit

• Money Withdrawal

• Compound Interest

Interest earned on both the principal amount and any interest already earned

• Direct Deposit

• Compound Interest

• Simple Interest

• Complex Interest

The rate at which the price of goods increases and consumer purchasing power decreases over time

• Interest

• Coupon Rate

• Inflation

• Sifting

A method of saving whereby you put a fixed amount of income into a savings account before you pay monthly bills or make purchases

• Cash Stacking

• First 10%

• Pocketbooking

• Pay Yourself First

Interest paid on the principal alone

• Simple Interest

• Principal Interest

• Compound Interest

• Complex Interest

A savings account, typically offering higher interest rates, that is managed entirely online with no physical bank branch

• Online Savings Account

• Money Market Savings Account

• Traditional Bank Account

The U.S. administration insuring deposits in U.S.credit unions against credit union failure

• FDIC

• FBI

• NCUA

The U.S. corporation insuring deposits in US banks against bank failure; Guarantees up to 250,000 of consumer deposits

• FDIC

• FBI

• NCAA

• DEA

Money set aside for unanticipated expenses or loss of income; Generally 3-6 months worth of income

• Direct Deposit

• Emergency Fund

• 401K

• Certificate of Deposit