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SIRM

8th grade FACS: Saving, Investing, and Risk Management

TermDefinition
bond an IOU issued by a company, municipality, or the federal government in exchange for a loan from an investor that will be repaid with a set rate of return.
financial institution a business that provides money-related services
interest a fee received or paid for the use of money
invest to commit money to gain a profit or earn interest
mutual fund a collection of stocks or bonds of various corporations
opportunity cost the next best alternative given up when making a financial choice
Pay Yourself First (PYF) to automatically save a specified amount from a paycheck for future use
principal the amount of money originally invested
risk the possibility of financial loss or physical harm
savings account an interest-bearing account where people put money for future use
stock a share of a corporation sold to the public
insurance policy a contract that outlines coverage plans and protects a person against financial loss or damage.
premium the amount paid for an insurance policy
Created by: mnunn
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