Personal Finance Wrap Up

What are some benefits to starting a savings account early?

• you can earn interest on money saved

• putting money aside will help avoid spending it on something else

• setting a savings goal will help

• all of the above

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

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

A mutual fund allows investments to be ___________.

• Secured
• Guaranteed
• Diversified
• Minimal

This type of retirement account offered by employers to their employees allows them to set aside tax-deferred income.  Sometimes employers will even match the employee contribution up to a certain amount.

• mutual fund
• 401(k)
• Roth IRA
• savings

This term refers to the original amount of a loan OR the original amount of money invested. 

• Principal
• Interest
• Rebate
• Fixed Rate

This is an obligation of repayment, usually including principal plus interest; any time you owe someone money.

• compound interest
• emergency fund
• APR
• debt

Term that applies to the ability to buy something now and pay for it later over a period of time (usually with having to pay a finance charge and/or the addition of interest). 

• Savings
• Profit
• Budgeting
• Credit

Tags

CCSS.7.RP.A.3

Which budget item will most likely take up the largest percentage of your income at 25-30%?

• transportation

• housing

• groceries

• saving/investing