Financial Literacy Mid Term 24-25 Study Guide

Front

What is the Rule of 72?

Back

Way to estimate how long to double your investment

Front

When a check that you've written clears the bank:

Back

Your account is debited and the balance decreases

Front

Which is an alert that you should enable on your bank account? Options: Unusual Activity, Low Balance, Mobile Deposit, All of the Above

Back

All of the Above

Front

What is the FDIC?

Back

Federal Deposit Insurance Corporation

Front

What is the amount of FDIC protection per bank account?

Back

$250,000

Front

What is the difference between a checking and savings account?

Back

Checking is transactional; savings helps you grow your money over time

Front

Which is interest paid on interest previously earned?

Back

Compound Interest

Front

What is the time value of money?

Back

Money today is worth more than the same amount in the future due to its earning potential

Front

Purpose of a Budget

Back

Helps you to manage your income and expenses

Front

In the 50-20-30 Rule of Budgeting, which does the 20% go toward?

Back

Savings