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Study Stack #3
Financial Unit Review
| Question | Answer |
|---|---|
| "Pay Yourself First" | Putting money away automatically each and every month |
| Compound Interest | Interest computed on the principal each year, |
| Rule of 72 | Divide the interest rate into this number and it will tell you how often your money doubles |
| Millionaire Fact | Someone who spends less money than he/she earns |
| Time | One factor used to figure out how much money one will have in the long run |
| Inflation | Every year prices rise for the items we want to buy, it works against our savings plan |
| Investment Pyramid | The more you earn on your money, the riskier it is (bank savings are at the bottom, stocks are in the middle, collectibles/metals at the top) |
| Down Payment | Amount paid ahead of time to reduce the overall loan (usually required) |
| Appreciate | Asset goes up in value over the years |
| Depreciate | Asset that goes down in value over the years |
| Checking Account | Used to pay your bills, not intended to be used to save money |
| Savings Account | A safe place to keep your money, but not a very high rate of interest is earned here |
| Certificate of Deposit | Lending your money to the bank for a longer period of time earns a slightly higher interest rate than a savings account |
| Education | An ally of making more $ in the long run |
| Federal Reserve Note | Official name of our currency |
| Barter | The oldest form of trading known to us |
| $100 Note | Largest denomonination of currency currently printed in the U.S. |
| Lease | An agreement that is signed that the tenant promises to obey, usually a year in length |
| Mortgage | A legal document giving the lender a claim against the property |
| Foreclosure | When the bank is forced to seize the property and sells it on its own |
| Equity | The difference between what a house is worth and how much is left to pay on the mortgage. |
| Appraiser | A person appoointed by the bank who figures out what your house and property are actually worth |
| Vehicle Loan | Usually three to five year loan at a higher interest rate than a home loan |
| Repossess | The bank takes back a vehicle if the loan is not paid back in a timely manner |
| Vehicle Lease | A consumer who likes to have a nice vehicle rents it for a long period of time, like two to three years. |
| Depreciation | The fact that certain assets go down in value each year like cars, boats, campers. |
| Appreciation | The fact that certain assets go up in value each year like a house |
| Capital Gain | When an asset is worth more than what it originally cost |
| Capital Loss | When an asset is worth less than what it originally cost |
| Liquidity | How quickly an asset can be converted into cash $$$ |
| mint.org | A valuable website to use as a financial tool for eighth graders at MMS |
| Eviction | Failure to follow the rules of apartment lease results in this happening to a tenant |
| Collectibles | A high risk investment on the risk vs. reward pyramid (like a baseball card collection) |
| Precious Metals | A high risk investment on the risk vs. reward pyramid like collectibles. (Gold & Silver) |
| Security Deposit | Usually one or two month's rent paid ahead of time before getting the keys to the apartment |
Created by:
dlajaa
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