Everfi More3 Flashcards
Earning Potential
The more money you invest in higher education = higher pay in the workforce
Scholarships
Students must apply for these funds and they do not have to be repaid. Awards are based on merit, financial need and/or combination of the two.
FAFSA
Free Application for Federal Sudent Aid - Main form used to apply for federal education grants and loans.
Subsidized Loans
Type of federal student loan in which the government pays the interest that accrues while student is in school.
Stafford Loan
Most common type of federal loan awarded. Based on limits that are set for an individual loan as well financial need.
Private Student Loans
Financed by private companies rather than government. Since these interest rates and fees aren’t capped by government, they cost more.
Perkins Loan
Another common federal student loan. These loans have a set 5% interest rate and a 10 year repayment period.
Repayment Period
Amount of time given to an individual to pay back money lent.
Grace Period
Amount of time you have to pay back the balance of loan before it starts accruing interest.
Grants
Given to students to help pay for education and do NOT have to be repaid. Similar to scholarships.
Numerical Amount
numbers written in box of check representing how much the check is worth
Written Amount
spelled out on line representing ‘‘legal tender’’ amount of check
Account Number
2nd range of numbers @ bottom of check. Identifies which account to take money from
Check Number
upper right hand corner of a check. keeps track and identifies checks you write
Signature Line
Where the Authorized Signer places his or her name. without the authorized signers name the check will not be cashed
Memo Line
reminder of what the check payment for and is not necessary to fill out and not considered a legal agreement
Routing Number
1st range of numbers @ bottom of check. identifies what bank and which Federal Reserve Discrict the bank belongs to
Balance Account
keeping track on how much money you take from your account and how much money you deposuit into your account
Payday Lenders
Not a bank. they offer small loans with repayment of that loan due by the next paycheck
Federal Reserve
Central banking system of the United States. Composed of Board of Governors, the FOMC AND 12 regional Federal Reserve Banks. Prevents banking disaters and promotes a healthy economy
Comercial Bank
Deal primarily with deposits and loans from corporations and large businesses
Retail Bank
deals directly with individuals and small businesses
Credit Union
Cooperative banks that aere privately owned and controlled by memebers provides low rates for members
Saving and Loans
Banks that specialize in accpeting deposits and making mortgage loans no offers are given to commercial banks
Board Of Governors
Insures banks behave responsibly consists of 7 members appointed by president supervisesd the 12 reserve banks and adds to monetary policies
12 Regional Reserve Banks
conducts research on the economy provides finanial services to other banks and the US government
Federal Open Market Committee
decides nations policies that govern money that stimulates the economy
Savings Account
safe place for your money that earns interest
Certificates of Deposits
deposits that are held by your bank for a specific fixed period of time
Required Balance
a certain amount of money that must be kept in your account at all times or you may be penalized
Online Access
enables you to transfer funds send checks and check your balance via the internet
FDIC Insurance
Federal Deposit Insurance Corpoaration that protects the money in a bank account
Liquidity
refers to how easily and quickly you assests like your money can be moved
Bias
A personal and sometimes unreasoned judgement or prejudice
Citation
An act of quoting providing the specific source of the material
Cloud Computing
A computer network that allows for software and hardware to be placed on it, thereby removing the need to have them stored on your computer; some examples include word processing documents, e-mail, and music files
Copyright
Exclusive rights given someone who creates original work; the individual is protected for his or her lifetime and 50 years his or her death
Credible
Offering reason to be believed
Database
A computer system that stores enormous amount of data
Digital Security Certification
A certification given to websites that verifies whether a website is secure or not
Domain Name
A type of internet address such as .gov for government, .edu for educational instituations, .com for commercial sites, etc.
Fair Use
A limitation and exception to the exclusive right granted by copyright law to the author of a creative work
Intellectual Property
Property created from an original thought or idea
Open Source
A way in which software is developed that allows access to the source code of an application or software and is free to update and use
Piracy
The unauthorized reproduction or copying music, video, or literature without proper compensation or permission
Plagiarism
Representing the language or thoughts of an author as our own, without indicating where the information is from
Application
Also called an “app”, it is computer software created for a particular task or tasks; it is increasingly used to mean software that is downloaded for use on cell phones
Blog
A websites that is regularly updated and operates like a journal with writing, opinions, experiences, photos, videos, and links to other information on it
Electronic mail sent between computer networks
Emoticon
The use of letters and punctuation in a message that indicates the emotion of the text (e.g., :) mean happy)
E-reader
A device or computer program used for reading electronic books
MP3
A common audio format for playback and storage of music on digital audio players
Multimedia
Content and media that combines different content forms, such as text, audio, animation, and still images
Presentation
A computer program used to display information, normally in the form of a slide show
QR Code
Quick Response code; a type of two-dimensional bar code, consisting of black modules in a square pattern on a white background, that can hold a large amount of any kind of data
Social Media
Media that use internet and cell phone applications to interact, collaborate, and create content
Social Network
A website designed for groups of people who published their own information and share it with others such as friends, family, co-workers, etc.
Template
A standard display design used in blogs to provide a structure for information to be viewed
Uploading
Sending data, such as a music or video file, from a local computer system to another computer system or server
Web 2.0
Refers to application on the web that allow users to interact through user-generated content, design, and collaboration; includes the functions of social media websites
Wiki
A websites that allows users to add and edit interlinking web pages
Word Processing
A computer application used for the production (including composition, editing, formatting, and possibly printing) of any sort of printable material
Adware
Computer software that displays advertisements
Bias
A personal and sometimes unreasoned judgement or prejudice
Bystander
One present but not taking part in a situation or event
Cyberbulling
Using technology to harm others through deliberate, repeated, and hostile attacks
Digital Addiction
A type of addiction characterized by a dependence on the use of digital technologies such as cell phone and computers
Downloading
Receiving data, such as music or video file, from a server or another computer system
Electronic mail sent between computer networks
Emoticon
The use of letters and punctuation in a message that indicates the emoticon of the text (e.g., :) to mean happy)
Fair Use
A limitation of exception to the exclusive right granted by copyright law to the another of a creative work
Hacked
Your computer or computer network has been broken into without your premission
Identity Theft
A form of fraud where one person assumes the identity of another person
Intellectual Property
Property created from an original thought or idea
Malware
Computer software designed to harm a computer
Multimedia
Content and media that combines different content forms, such as text, audio, animation, and still images
Piracy
The unauthorized reproduction of copying of music, video, or literature without proper compensation or permission
Plagiarism
Representing the language or thought of an author as your own, without indicating where the information is from
Sexting
The act of sending inappropriate sexual material, usually text or images, between cell phones
Smart Phone
A cell phone that is designed to perform various computer applications including, but not limited to e-mail, browsing the web, playing video games, playing music, and watching videos
Social Media
Media that use internet and cell phone applications to interact, collaborate, and create content
Social Network
A website designed for groups of people who publish their own information the share it with other such as friend, family, co-workers, etc.
Textspeak
Abbreviations and slang commonly used to shorten a text or instant message, like using “?s” for “questions”
Viral
An object or pattern that is quickly replicated and shared
Virus
A type of malware that replicates itself and spreads to other computers
Webcam
A video camera for computer typically used to provide real-time video footage
Application
Also called an “app”, it is computer software created for a particular task or tasks; it is increasingly used to mean software that is downloaded for use on cell phones
Cloud Computing
A computer network that allows for software and hardware to be placed on it, thereby removing the need to have them stored on your computer; some examples include word processing documents, e-mail, and music files
Copyright
Exclusive rights given to someone who creates original work; the individual is protected for his or her lifetime and 50 years after his or her death
Database
A computer system that stores enormous amounts of data
Programming
The process of designing, writing, testing, debugging, and maintaining the source code of computer programs
Spreadsheet
A computer application that simulates a paper accounting worksheet
Presentation
A computer program used to display information, normally in the form of a slide show
STEM
Refers to careers in science, technology, engineering, and mathematics
Tablet
A highly portable computer shaped like slate or pad of paper, featuring a touch screen
Word Processing
A computer application used for the production
How can investors receive compounding returns?
By investing their earnings back into their original investment
When you buy a ____ , you are loaning money to an organization.
Bond
Which best describes the difference between stocks and bonds?
Stocks allow investors to own a portion of the company; bonds are loans to the company.
What is the primary reason to issue stock?
To raise money to grow the company
When it comes to investing, what is the typical relationship between risk and return?
The greater the potential risk, the greater the potential return.
Which of the following correctly orders the investments from LOWER risk to HIGHER risk?
Treasury bond − Diversified mutual fund - Stock
If an investment is considered “volatile”, it means..
the value of the investment may be hard to predict.
Diversification is important in investing because…
It helps you to balance your risk across different types of investments.
Using a brokerage firm, a qualified investor buys 1000 shares of a common stock at $50 a share on 50% margin. This means that the
brokerage firm is lending the investor 50% of the money.
Are Issued by a state,and are tax exempt.
Municipal Bonds
most common types of retirement plans
401k
IRA
Individual Retirement Account
what do all the retirement plans have?
Tax Benefits
difference between traditional and roth IRA
traditional: Do not pay taxes today (pay when retire)
investing vs. savings
investing: Greater gains, greater risks
stocks
shares of ownership in a company; when the company grows in value, so does your stock; you are known as a stockholder/shareholder who in turn elect a Board of Directors.
bonds
You are loaning to a company or the government; The amount of the loan is the price of the bond; known as a bondholder
treasury bonds
issued by U.S. Treasury; backed by U.S. gov’t.; considered safe investment
municipal bonds
- issued by state, county or city governments
mutual funds
Buying a mix of stocks and bonds; Mutual funds are chosen and managed by a fund manager.
index funds
Made to track the overall performance of the market or certain investment types or groups of stocks.
why issue stocks and bonds?
company - raise funds
four stock exchanges
NASDAQ
NASDAQ
World’s first electronic stock market; Trades are made via computer rather than in person or over the phone.
nyse (new york stock exchange)
- largest stock exchange in the world in terms of amount of money traded.
s&P 500 (standard and poor 500)
Represents the performance of 500 companies that are mostly based in the U.S.; some consider it to be a more accurate representation of the stock market as a whole.
dow jones industrial index
Index that represents the performance of 30 of the largest companies in the U.S.
risk vs. return
high risk, high potential return
young age vs . old age
young- higher risk portfolio
diversification
creating a mix of investments that have differing levels of risk.
