WISE

What are assets

• the price of money

• everything a person owns with monetary value

• the original amount of money saved or invested

• the portion of current income not spent on consumption

What is interest rate?

• a rate that deducts a portion of your money from your account

• everything a person owns

• the percentage paid on money invested or saved.

What is liquidity?

• The portion of current income not spent on consumption.

• The original amount of money saved or invested.

• • A measurement of how much a person or household owns once all debts have been paid.

• how quickly and easily assets can be accessed or converted into cash

What is principal?

• The original amount of money saved or invested.

• • A measurement of how much a person or household owns once all debts have been paid.

• The end result of something a person intends to acquire, achieve, do, reach, or accomplish.

• The price of money.

What is pay yourself first?

• An account at a depository institution that provides an easy method for withdrawing and depositing money.

• Interest on Interest

• saving strategy that states to set aside a predetermined portion of money for saving each time a person is paid before using any of the money for spending

What is compound interest

• Interest taken off

• Interest saved

• Interest on Interest

Time Value of Money

• saving strategy that states to set aside a predetermined portion of money for saving each time a person is paid before using any of the money for spending

• a sum of money is worth more now than the same sum will be at a future date due to its earnings potential

• An account at a depository institution that provides an easy method for withdrawing and depositing money.

• A depository institution account that is designated to hold money not spent on current consumption.

What is the 50-30-20

• 50% Wants

  30% Savings

  20% Needs

• 50% Needs

  30% Wants

  20% Savings

• 50% Savings

  30% Needs

  20% Wants

What are EE bonds

• they lower over the decades

• they double over decades

What is the rule of 72?

• The estimated amount of days it will take for your money to triple

  days = 72/ 3

• The estimated amount of years it will take for your money to double

  time = 72/interest rate

• The estimated amount of years it will take for your money to erase from your credit score

  time = 75/ interest

• The time in between 20 years it takes for your money to double

  time = 72/20