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| Compound interest is interest paid on interest previously earned |
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| It is important to build up your FICO score by taking out credit cards and car loans |
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| The purpose of insurance is to transfer risk |
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| Opportunity cost is the value of the option you chose to do |
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| It is not necessary to record debit card transactions in your check register because accounts are now online |
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| One of the most important factors to consider when choosing a career is income potential |
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| One way to protect your identity is to carry your social security card in your wallet |
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| Mutual funds are comprised of several thousand stocks |
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| A Roth IRA is used for retirement savings |
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| A written budget will help you identify how and where you spend your money |
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| It is not necessary to carry renter's insurance if you live in a college dorm or don't have items of high value |
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| You are entitled to a free credit report once a year from each of the three major credit bureaus |
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| Don't fund your 401(k) if your employer does not offer a match |
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| Most American's avoid the use of credit when it comes to buying big-ticket items like a car or furniture for their home |
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| You should save your money for three basic reasons: emergency fund, large purchases, and wealth building |
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| You should hold off investing for retirement until you have college paid for |
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| Having more than one bank account is not a good idea since it can complicate money management |
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| You'll only need to complete the FASFA at the start of your college education |
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| Using cash gives you more bargaining power than using credit |
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| Learning to be quiet is a powerful negotiation tool |
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| A form of financial aid that does not need to be repaid |
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| Preferred method of debt repayment; includes a list of all debts organized from smallest to largest balance |
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| A decrease or loss in value |
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| Compares after-tax income to the money people spend on a variety of items |
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| A form of secure long-term debt |
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| An obligation of repayment owed by one party to a second party |
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| A system by which goods and services are produced and distributed |
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| Quality of an asset that permits it to be converted quickly into cash without loss of value; availability of money |
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| Process by which the holder of a mortgage sells the property of a homeowner who has not made interest and/or principal payments on time |
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| A person or organization that uses a product or service |
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| The process of quantifying costs and benefits of a decision |
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| An economic system based on a free market, profit motive, open competition, and private ownership of the means of production |
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| Describes the type of coverage in an insurance agreement |
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| The exchange of goods or services without the use of money |
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| Series of files that are divided into categories and one used to store cash for planned monthly expenses |
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| Money set aside and left alone for a 'rainy day' |
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| A person or business that offers loans at extremely high interest rates |
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| To match your bank statement with you checkbook |
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| Amount you must pay before you begin receiving any benefits from your insurance company |
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| Piece of ownership in a company, mutual fund or other investment |
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| A summary of all the income and outgo over a certain time period |
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| Expenses that remain the same from month to month |
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| The five steps to financial success |
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| The recipient of assets passed on from the death of a friend or relative |
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| The persistent rise in the cost of goods and services |
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| A fee paid by a borrower to the lender for the use of borrowed money |
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| A program that allows students to work part time while continuing their studies |
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| What concept is best explained by the statement 'money spent here cannot be spent there'? |
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| Which of the following types of insurance is not recommended for a young single adult? |
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| Save a $500 Emergency Fund |
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| Which of the following steps is the first foundation? |
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| The benefit of diversification in you investments is: |
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Term
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| If you own stock in company X, you can expect to receive a: |
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| The zero-based budget insures that every dollar you make is assigned a specific purpose |
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Definition
| The zero-based budget is the best method of budgeting because: |
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| Which of the following could be a negative consequence of taking out student loans? |
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