A) Compound interest is difficult to calculate, so those who use it earn higher profits for their efforts

B) Compound interest means you have a fund manager who is compounding your returns without charging a fee

C) Compound interest allows you to earn interest not only on the amount you have saved, but also on the interest you've already earned

D) Compound interest directly impacts how much you will be charged in fees

You put every dollar of your net pay into a budget category each month

You spend your checking account balance down to $0 every month

You spend your saving account balance down to $0 every month

You pay every one of your debts down to $0 every month

Only collision-related damages

Damage caused by theft, fire, vandalism, or natural disasters

Legal fees only

Gas and oil changes

A goal you can achieve in less than a year

A goal that takes more than a year to accomplish

A goal focused on everyday expenses

A task you complete within a month

Retiring at age 65

Saving for a down payment on a house in 15 years

Saving $500 in three months for an emergency fund

Planning for your child’s college tuition

Grocery expenses

Monthly rent or mortgage payment

Gas for your car

Entertainment expenses

A. A method of pricing products

B. A combination of strategies involving product, price, place, and promotion

C. A list of competitors in a market

D. A social media marketing plan

Dollar-cost averaging is a strategy that only expert investors use

Dollar-cost averaging is a way to decrease your risk

Dollar-cost averaging is advantageous because earnings are untaxed

Dollar-cost averaging is offered exclusively through robo-advisors

As soon as you apply for a credit card or loan

Six months after you first actively use your credit

Once you pay all of your credit balances in full

Once you turn 18

Loss of $300

Profit of $500

Loss of $500

Profit of $300

Your monthly payment to your insurer, regardless of whether you use any services

A list of the procedures covered by your insurance carrier

An added cost you pay in order to receive higher-quality services

The amount you pay out-of-pocket for a specific procedure or service

A fixed loan repaid in monthly installments

A summary of outstanding debts

A report detailing a person’s credit history

An amount of credit extended to a borrower that they can draw on as needed.

Damage to your own property

Health care expenses

Damage or injury you cause to others or their property

Natural disaster damage

You don’t get penalized for late payments

You get a discount on future loans after this one is paid off

You have a better chance of getting approved and getting a lower interest rate if the cosigner has good credit

You automatically get the same credit score as the cosigner once the loan is paid off

Choosing one type of investment

Distributing investments across different asset classes

Buying and selling stocks quickly

Calculating the total value of your portfolio

Fixed-rate mortgages have a constant payment every month, but an interest rate that increases throughout the term of the loan

Fixed-rate mortgages have a fixed interest rate for a few years, after which time the interest rate fluctuates according to general market conditions

Adjustable-rate mortgages have a fixed interest rate for a few years, after which time the interest rate fluctuates according to general market conditions

The two mortgages work the same way but are called different names depending if they come from a bank or a credit union

Cancel his credit cards

Make on-time payments

Get a car loan

Check his credit score

It is mandatory to have auto, health, life, disability, and renters/home insurance, so he'll have to pay 5 penalties per year for not enrolling in these insurance types

An accident or illness can strike at any time and be quite expensive, so it's possible he'd need a big sum of money well before his emergency fund was large enough

Having insurance not only protects you financially, but also physically, so he'll be less likely to experience illness or accident if he has insurance

The sooner he starts paying for insurance, the sooner he will reach his maximum lifetime requirement and can stop paying altogether for coverage

Invest in a low cost index fund

Estimate how much she will need for retirement to determine how much she needs to invest each month

Pick individual stocks to see if she can beat the market

Invest in a diversified portfolio

A credit card

A vehicle used to secure a loan

A personal loan

A signature on a loan agreement

Investing is always a less risky option than saving

Investing is best for short-term situations like emergency funds; saving is best for the long-term

Investing typically earns between 1-2% while saving generally earns between 5-7%

Investing allows you to accumulate wealth for retirement while saving is best for short-term purchases or emergencies

You are guaranteed to get your money back from a scam by filing a claim with your local police department

There are a number of red flags you can be aware of that can help you avoid being scammed

Scams today most commonly occur through paper mail you receive

Young people don’t have to worry about being targeted for scams unless they have a bank account

Joanie says, "Call the auto lender and see if you can negotiate a lower monthly payment or some other deal."

Debbie says, "Stop making the credit card payment for a few months until you're caught up on the auto loan."

Angie says, "Pick up a second job for as long as it takes to accumulate enough money to make all your payments, even if it means losing time with friends and family."

Betty says, "Cut down to a bare bones budget, where your necessities and your debt repayments take first priority. Cut everything non-essential."

Product

Price

Place

Promotion

Money

Manageable

Market

Measurable

Average rent for an apartment

Food and grocery store options in the area

Employment opportunities

Average cost of Uber, Lyft, or taxi fare

His gross pay is $$2,500 and net pay is$$ 3,000

His gross and net pay are $3,000

His gross and net pay are $2,500

His gross pay is $$3,000 and net pay is$$ 2,500

The cost of borrowing money, including interest and fees, expressed as a yearly percentage

The total monthly payment of a loan

The amount of the down payment required

The minimum amount required to secure a loan

Paying your bills on-time

Paying down balances on your credit card accounts

Decreasing your utilization of credit

Applying for multiple credit cards

When sellers keep you in the dark by withholding key information about their product

When a salesperson continues to send you emails long after you’ve left the store

When a business systematically takes advantage of a subset of customers based on a certain demographic or socioeconomic status

When design features trick users into doing something that benefits the business

Groceries and eating out

Rent

Cell phone bill

Bedroom furniture

A. A short-term investment strategy for quick profits

B. A mandatory government savings program

C. A financial mechanism for saving and investing money for retirement

D. A type of insurance policy

$0

$1,000

$6,200

$30,000

There are several public transportation routes between Greg's apartment and work

The cost of public transportation is less than Greg’s monthly car payment

Greg’s company covers half the cost of his monthly public transportation pass

Using public transportation, Greg’s commute to work one-way is two hours

Every time you pay extra, the lender will reduce the interest rate they're charging by a small amount

The extra payment will be applied to the principal amount you owe, which will pay down your debt more quickly

The extra payment will be applied to the interest you owe, which will reduce the overall cost of your loan

Amortized loans typically have much higher interest rates than credit cards, so they're the best place to put your extra cash

$0

$200

$800

$1,000

The number of vacations taken each year

Financial stability

Social connections

Physical and mental health

Targeting people who live in warm climates

Targeting women aged 25–40

Targeting people who value eco-friendly brands

Targeting customers who frequently buy online

Your monthly premium

A copay of $15 to fill a prescription

A $1000 deductible if you're in an auto accident

Excess bills from a car accident once you've gone over your maximum coverage limit

To avoid paying any medical or repair bills

To provide financial protection against unexpected losses or risks

To invest money for retirement

To guarantee profits in business

If you make the minimum payment on your card within the 25 day period, the credit card company will not charge you interest

If you pay your previous balance in full after the due date, the credit card company will not charge you interest

25 days is an exceptionally long period without paying a credit card bill

The 25 days after the end of the billing cycle is referred to as the grace period

You may receive dividends from the company, if the company pays them, and you have ownership of a portion of the company

You must receive dividends from the company (all companies must pay them) and you can select members of the management team (e.g., the Chief Executive Officer (CEO))

You can select members of the management team [e.g., the Chief Executive Officer (CEO)] and vote for members of the Board of Directors

You have ownership of a portion of the company and receive coupon payments from the issuer

A fee charged by a creditor for borrowing money

The total amount of debt a person owes

A fixed annual payment

The maximum credit limit on a credit card

Company profits

The investor's age

Government regulations

Principal amount, rate, and time

Open a credit card, with your parent or guardian as a cosigner

Take out a payday loan

Become an authorized user on a credit card used by your parent or guardian

Open and use a secured credit card

If you have an auto insurance policy and don't get into a car accident or file any claims for a year, you get your premiums back from the insurance company

If you have an auto insurance policy and get into multiple accidents within one year, your premium amount will decrease

Auto insurance premiums are a fixed price across all insurance companies

If you have an auto insurance policy and get into multiple accidents within one year, your premium amount will increase

Someone interviewing you for a job

Credit card companies

An insurance company reviewing your applicant for auto insurance

A bank representative who is helping you open a savings account

Credit Karma

Credit Wise

Wallet Hub

AnnualCreditReport.com

The amount the insurer pays before coverage begins

A fee charged by the government

The cost of the premium

The amount you pay out-of-pocket before insurance starts paying

Your preferred payment method to pay for fixing the error

A list of all of your financial accounts and balances

An explanation of the mistake and any evidence you have supporting your claim

References from a non-family member vouching for your creditworthiness

Compound interest is calculated once a year

Compound interest earns interest only on the principal

Compound interest earns interest on the principal and accumulated interest

Compound interest is always higher than simple interest

Bodily injury liability

Property liability

Collision

Comprehensive

Someone who lends money to a business

A person who manages a company's finances

An individual or entity that owns shares in a company

A customer who buys company products

You have an extra $125 each month that you can spend on a fun or leisure activity

You can invest a portion of your monthly income into a retirement fund, as your expenses are well within your budget

You need to either cut back on your spending or find an additional source of income to balance your budget

You have room in your budget to make philanthropic donations to your favorite charity

Demographic segmentation

Product segmentation

Geographic segmentation

Behavioral segmentation

ETFs are traded once a day after the market closes

An ETF is a single stock that you can buy in the stock market

ETF prices can change throughout the day as they are exchanged on the market

Actively managed ETFs have very low fees

Find an extra source of income by taking a second job, working longer hours, or borrowing from family if they can afford to help

Stop making payments on some of your debts so you can focus on getting the most expensive or largest debts under control

Continue making all payments and call your lenders and see if you can negotiate lower monthly payments, lower interest rates, or longer terms

Explore whether a free or non-profit credit counseling service could help

A loan used to buy any type of property

A loan specifically for purchasing a vehicle

A loan that requires no repayment

A type of loan with no interest

The total cost of the loan, including interest

The final balance due at the end of the loan

The original amount borrowed before interest is applied

The total cost of the down payment

Credit reporting agencies (Equifax, Experian and TransUnion)

The Internal Revenue Service (IRS)

Your employer

Local police department

Compound interest allows you to earn interest not only on the amount you have saved, but also on the interest you've already earned

Compound interest only applies to the original amount you deposited, not the interest earned

Compound interest is calculated once at the end of the investment period

Compound interest means you lose money over time

You put every dollar of your net pay into a budget category each month

You only budget for fixed expenses and save the rest

You create a budget based on last year’s spending

You only track your spending, not your income

Damage caused by theft, fire, vandalism, or natural disasters

Coverage for injuries to other people in an accident you cause

Payment for routine maintenance and oil changes

Coverage for mechanical breakdowns due to wear and tear

A goal that takes more than a year to accomplish

A goal that can be achieved in a week

A goal that requires no planning

A goal that is completed in a day

Monthly rent or mortgage payment

Electricity bill based on usage

Raw material cost per unit produced

Wages paid per hour worked

A combination of strategies involving product, price, place, and promotion

A set of financial statements used for budgeting

A list of company employees and their roles

A method for calculating business taxes

Dollar-cost averaging is a way to decrease your risk

Dollar-cost averaging guarantees higher returns

Dollar-cost averaging eliminates all investment risk

Dollar-cost averaging requires investing only in stocks

Six months after you first actively use your credit

One month after you open a bank account

Immediately after you receive your first paycheck

Two years after you turn 18

Profit of $500

Loss of $500

Profit of $800

Loss of $800

Your monthly payment to your insurer, regardless of whether you use any services

A type of insurance policy for luxury items

A government tax on insurance policies

A discount you receive for not making any claims

An amount of credit extended to a borrower that they can draw on as needed.

A type of insurance policy for property damage.

A fixed deposit account with a high interest rate.

A legal document for transferring property ownership.

Damage or injury you cause to others or their property

Routine maintenance of your own vehicle

Personal health expenses

Theft of your own belongings

You have a better chance of getting approved and getting a lower interest rate if the cosigner has good credit

You are not responsible for repaying the loan if you miss payments

You can avoid providing any personal financial information

You automatically receive a larger loan amount regardless of your credit history

Distributing investments across different asset classes

Investing only in stocks

Keeping all money in a savings account

Spending money on luxury goods

Adjustable-rate mortgages have a fixed interest rate for a few years, after which time the interest rate fluctuates according to general market conditions

Fixed-rate mortgages have an interest rate that changes every year based on inflation.

Adjustable-rate mortgages always have lower interest rates than fixed-rate mortgages for the entire loan period.

Fixed-rate mortgages start with a low rate that increases after five years.

Make on-time payments

Close all credit card accounts

Max out credit cards

Ignore credit card bills

A vehicle used to secure a loan

A concert ticket

A grocery receipt

A movie poster