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#1
Q: Compound interest
A: Interest earned on interest
#2
Q: APR
A: Annual percentage rate of borrowing
#3
Q: Credit score
A: A number showing how reliably you repay debt
#4
Q: Emergency fund
A: 3 to 6 months of expenses saved
#5
Q: Index fund
A: A fund that tracks a market index
#6
Q: 401(k)
A: US employer retirement savings plan
#7
Q: Roth IRA
A: Retirement account funded with after-tax money
#8
Q: Inflation
A: General rise in prices over time
#9
Q: Diversification
A: Spreading investments to reduce risk
#10
Q: Net worth
A: Assets minus liabilities
#11
Q: Budget
A: A plan for income and spending
#12
Q: Dividend
A: A share of company profit paid to shareholders
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