This activity is important because it covers important terms for effective money management.

Building a Financial Base

This activity is important because it covers important terms for effective money management. The goal of this exercise is to identify the best ways to manage your personal finances. Complete each statement with the correct term. Note not all terms will be used.

Bulld Your Financial Base Terms The is one of the best places to put your money. credit card is one of the worst places to ke

Solutions

Expert Solution

The stock market is one of the best places to put your money.

Explanation: Stock markets are the best way to grow your money. You can put 10% of your portfolio in stocks. Besides that, you can invest in bonds, ETFs, mutual funds, real estate, etc.

A “bank account” is one of the worst places to keep long term investment

Explanation: Bank accounts are good saving accounts but they have a low rate of interest and you lose value because of inflation.

"You can use “credit card” to keep a track of your purchases"

Explanation: Using a credit card is a convenient way to track all your expenses recorded in a monthly statement. You should pay your full outstanding balance every month.

Your “home” is likely to be the largest of the most important investments you make

Explanation: Buying a home is the largest investment a person makes to ensure a safe and secure future.

It is wise to plan your financial future with “insurance”.

Explanation: Insurance covers will secure your life, home, car, and physical assets against any unforeseen risks.

keosha answered 1 year ago

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