Everyday personal finance and investing vocabulary covering budgeting, credit, retirement accounts, and basic investment terms.
40 cards · basic cards · AI-written, checked twice. Edit anything.
- What does APR stand for?
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Annual Percentage Rate- What is a credit score?
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A numerical rating that represents creditworthiness, typically ranging from 300 to 850- What is a budget?
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A spending plan that allocates income to expenses and savings- What is an emergency fund?
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Savings set aside to cover unexpected expenses or loss of income- What is a deductible?
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The amount of money you must pay out of pocket before insurance begins to cover costs- What is a 401(k)?
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An employer-sponsored retirement savings plan that allows employees to contribute pre-tax income- What does IRA stand for?
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Individual Retirement Account- What is a dividend?
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A payment made by a company to its shareholders, usually from profits- What is a bond?
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A fixed-income security representing a loan you give to a government or company in exchange for interest payments- What is a stock?
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A share of ownership in a company- What is asset allocation?
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The process of dividing an investment portfolio among different asset types, such as stocks, bonds, and cash- What is compound interest?
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Interest earned on both the original principal and previously earned interest- What is inflation?
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A general increase in prices of goods and services over time, reducing purchasing power- What is net worth?
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The total value of your assets minus your total liabilities- What is liquidity?
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A measure of how quickly an asset can be converted to cash without losing value
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