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Free Personal Finance Basics Flashcards

Money skills are a vocabulary problem before they are a math problem — interest, diversification, credit. These cards define the terms behind every good financial decision.

Study these 10 starter cards

QUESTION
Tap the card to reveal the answer
QWhat is compound interest?
AInterest earned on both your principal AND previously earned interest
QWhat is an emergency fund?
ASavings covering 3–6 months of expenses for unexpected events
QWhat is diversification?
ASpreading investments across assets so one failure can’t sink you
QWhat is a credit score?
AA number summarizing how reliably you repay debt
QWhat is the difference between a stock and a bond?
AA stock is ownership in a company; a bond is a loan to one
QWhat is inflation?
AThe general rise in prices that erodes money’s purchasing power
QWhat is an index fund?
AA fund that passively tracks a market index at low cost
QWhat does APR mean?
AAnnual Percentage Rate — the yearly cost of borrowing
QWhat is the 50/30/20 budgeting rule?
A50% needs, 30% wants, 20% saving and debt repayment
QWhat is net worth?
AEverything you own minus everything you owe

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