Financial Lit Parts 1 & 2 of study guide

 The original amount of money that people save or invest is known as

• Interest

• Compound interest

•  Principal

• Seed money

Your beliefs about ideas and principles that are important to you. Example: honesty

• Financial goal

• Value

•  net worth

• credit bureau

Measurable objectives required to spending money.

• Financial goal

• Value

•  net worth

• credit bureau

The difference between what you own and what you owe.  Assets - liabilities = net worth

• Financial goal

• Value

•  net worth

• credit bureau

the amount paid for working hours beyond the standard work week.

• net pay

• overtime

• gross pay

• discretionary income

the amount of income a household or individual has to invest, save, or spend after taxes and necessities, like mortgages or rent

• net pay

• overtime

• gross pay

• discretionary income

take-home pay or the amount employees earn after all payroll deductions are subtracted from their gross pay.

• net pay

• overtime

• gross pay

• discretionary income

Which is not Mandatory deduction?

• Required deductions taken out of your paycheck.

   

• You have a choice.

• medicare

Which savings account has the lowest interest rate?

• money market

• checking account

• regular savings

• Certificate of deposit

Which type of savings account requires an investor to leave money on deposit for a specified amount of time?

• money market

• checking account

• regular savings

• Certificate of deposit