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Personal Finance Management Merit Badge

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Personal Finance Management Merit Badge

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25 Questions

1. Fixed Rate

2. Different ways to borrow money

Shares of a publicly traded company sold on a stock exchange. Examples: GE, Juniper, AT&TAn interest rate that does not change over time. For example a fixed rate loan of 3% over 15 years that you take out when you buy a house.This is the current asking price that someone is willing to sell stock for on the open market.You can borrow from your parents or family or relatives. They usually won't charge you interest or if they do, it will be a smaller amount than if you took out a loan. You can take a loan out from the bank. But you must be 18. You can also use a credit card to borrow money on credit.

3. Public traded stock 'Current Price'

4. Common Stock

5. Whole Life Policy of Life Insurance

You can borrow from your parents or family or relatives. They usually won't charge you interest or if they do, it will be a smaller amount than if you took out a loan. You can take a loan out from the bank. But you must be 18. You can also use a credit card to borrow money on credit.There are 2 types of life insurance. Whole Life and Term. The whole life policy costs more in the beginning, but the funds are also invested and mature over time. The policy pays premiums that go down over time. (Think compounding interest) So at the end of your life the policy pays for itself or costs very little. You can cash out your whole life policy and it has value where as a term life insurance only has a payout if you die.This is the current asking price that someone is willing to sell stock for on the open market.An interest rate that does not change over time. For example a fixed rate loan of 3% over 15 years that you take out when you buy a house.

6. How does personal responsibility affect your credit report

An interest rate that does not change over time. For example a fixed rate loan of 3% over 15 years that you take out when you buy a house.YOU own your credit score. You need to make sure you don't get yourself into so much debt that you can't pay your bills. You need to make sure you pay your bills early so they are not late. If they are late, they will raise your interest rates and charge you late fees as well as damage your credit score. It is YOUR credit score, a bad credit score will make it tough to get a loan or even a job!!!You can borrow from your parents or family or relatives. They usually won't charge you interest or if they do, it will be a smaller amount than if you took out a loan. You can take a loan out from the bank. But you must be 18. You can also use a credit card to borrow money on credit.This is the current asking price that someone is willing to sell stock for on the open market.

7. Debit Card

This is the current asking price that someone is willing to sell stock for on the open market.You can borrow from your parents or family or relatives. They usually won't charge you interest or if they do, it will be a smaller amount than if you took out a loan. You can take a loan out from the bank. But you must be 18. You can also use a credit card to borrow money on credit.Is Linked to your savings account or your checking account. When you charge something with it, the amount is deducted from your savings or checking account immediately. So you have to be careful where you use it. If that card number is stolen the thief will be taking money directly out of your checking account and you will need to talk to the bank to get it back.An interest rate that does not change over time. For example a fixed rate loan of 3% over 15 years that you take out when you buy a house.

8. Compounding Interest

This is the current asking price that someone is willing to sell stock for on the open market.You can borrow from your parents or family or relatives. They usually won't charge you interest or if they do, it will be a smaller amount than if you took out a loan. You can take a loan out from the bank. But you must be 18. You can also use a credit card to borrow money on credit.An interest rate that does not change over time. For example a fixed rate loan of 3% over 15 years that you take out when you buy a house.Interest is usually paid yearly on a savings account. If a $100 investment gets 10% interest it will be paid out as $10 profit at the end of the year. The savings account will have $110 in it. Now, compounding interest kicks in after the first year. During the second year you start with $110, and at the end of the year you have $11 in interest. See how that is $1 more than last year. So, if you reinvest that $11, the interest will compound again next year. You start $121 the second year, and at the end you make $12 interest the 3rd year! That is $2 more than you made the first year! Now you have $133! All from that initial $100 investment!

9. Savings

This is the current asking price that someone is willing to sell stock for on the open market.An interest rate that does not change over time. For example a fixed rate loan of 3% over 15 years that you take out when you buy a house.You can borrow from your parents or family or relatives. They usually won't charge you interest or if they do, it will be a smaller amount than if you took out a loan. You can take a loan out from the bank. But you must be 18. You can also use a credit card to borrow money on credit.Funds that are stored in a savings account or under your mattress or in a piggy bank so they can be accessed quickly. You can use that for saving for a short term goal and retrieve the money fast when you need it.

10. Credit Card

An interest rate that does not change over time. For example a fixed rate loan of 3% over 15 years that you take out when you buy a house.You can borrow from your parents or family or relatives. They usually won't charge you interest or if they do, it will be a smaller amount than if you took out a loan. You can take a loan out from the bank. But you must be 18. You can also use a credit card to borrow money on credit.A credit card is a line of credit allows you to take a small loan out every month. The interest rate is usually high and the credit card companies make money when you don't pay it off at the end of the month.This is the current asking price that someone is willing to sell stock for on the open market.

11. Risk

This is the current asking price that someone is willing to sell stock for on the open market.Risk in investing, is how much of a chance you are taking of losing your money. If you invest in new start up companies that are just starting out, there is a chance that they go bankrupt and you lose your investment. (I.e. - the stock goes from $10 a share to $1 a share and no one wants to buy it). But Risk can have and upside, Microsoft and Apple stocks were cheap when they first came out and were risky investments, but people made a fortune on them that invested in them 25 years ago.An interest rate that does not change over time. For example a fixed rate loan of 3% over 15 years that you take out when you buy a house.You can borrow from your parents or family or relatives. They usually won't charge you interest or if they do, it will be a smaller amount than if you took out a loan. You can take a loan out from the bank. But you must be 18. You can also use a credit card to borrow money on credit.

12. Savings Bond (EE Series)

This is the current asking price that someone is willing to sell stock for on the open market.Sold by the US Government or a municipality (city), they are a investment purchased for a small price. You can purchase a $50 bond for $25 that will grow to $50 over several years. But it could take years to get there, and you can't cash the bond for 12 months. After 12 months you can cash them in anytime over 30 years.An interest rate that does not change over time. For example a fixed rate loan of 3% over 15 years that you take out when you buy a house.You can borrow from your parents or family or relatives. They usually won't charge you interest or if they do, it will be a smaller amount than if you took out a loan. You can take a loan out from the bank. But you must be 18. You can also use a credit card to borrow money on credit.

13. Publicly traded stock '52 week high and 52 week low'

This is the current asking price that someone is willing to sell stock for on the open market.This is the highest price paid for a stock in the last year and the lowest price paid for a stock in the last year. If the price is going up, the stock is doing well and the owners are making money. If the current price is down, then the owners are losing money.You can borrow from your parents or family or relatives. They usually won't charge you interest or if they do, it will be a smaller amount than if you took out a loan. You can take a loan out from the bank. But you must be 18. You can also use a credit card to borrow money on credit.An interest rate that does not change over time. For example a fixed rate loan of 3% over 15 years that you take out when you buy a house.

14. Term Life Insurance

There are 2 types of life insurance. Whole Life and Term. With term, you get it for say 20 years and you pay a small premium each month. After the 20 years, you policy is over. Your beneficiaries get paid out only if you die. There is no monetary value to the policy after the term is over.This is the current asking price that someone is willing to sell stock for on the open market.An interest rate that does not change over time. For example a fixed rate loan of 3% over 15 years that you take out when you buy a house.You can borrow from your parents or family or relatives. They usually won't charge you interest or if they do, it will be a smaller amount than if you took out a loan. You can take a loan out from the bank. But you must be 18. You can also use a credit card to borrow money on credit.

15. Charge Card

An interest rate that does not change over time. For example a fixed rate loan of 3% over 15 years that you take out when you buy a house.A charge card is like a credit card, but you must pay it off in full at the end of the month.This is the current asking price that someone is willing to sell stock for on the open market.You can borrow from your parents or family or relatives. They usually won't charge you interest or if they do, it will be a smaller amount than if you took out a loan. You can take a loan out from the bank. But you must be 18. You can also use a credit card to borrow money on credit.

16. Why is it unwise to only make the minimum payment on a credit card.

An interest rate that does not change over time. For example a fixed rate loan of 3% over 15 years that you take out when you buy a house.If you only pay the minimum balance on a credit card you will be wasting tons of money in interest, and paying off very little principle. You will never pay off the credit card and will always be throwing money way. The interest rate is high on a credit card and you should pay that credit card off before you focus on investing.You can borrow from your parents or family or relatives. They usually won't charge you interest or if they do, it will be a smaller amount than if you took out a loan. You can take a loan out from the bank. But you must be 18. You can also use a credit card to borrow money on credit.This is the current asking price that someone is willing to sell stock for on the open market.

17. To Default on a Loan

You can borrow from your parents or family or relatives. They usually won't charge you interest or if they do, it will be a smaller amount than if you took out a loan. You can take a loan out from the bank. But you must be 18. You can also use a credit card to borrow money on credit.An interest rate that does not change over time. For example a fixed rate loan of 3% over 15 years that you take out when you buy a house.This is the current asking price that someone is willing to sell stock for on the open market.A default on a loan is what happens when you don't pay the loan and you break the terms of the lending agreement. The bank can come after you and repossess your car or your house. It will also ruin your credit report rating for years.

18. What is a loan

When you borrow money for a period of time that you need to payback the lender for. If your parents give you a loan, the probably won't charge you interest. A bank gives you a loan and you sign a contract promising to pay it back. You pay interest on the loan at a rate specified in the loan agreement. Just like getting 10% interest on a savings account, you would PAY an extra 10% a year on the money you borrow. The banks charge a higher percentage on money they loan, than on the interest they PAY YOU for savings accounts interest and this is how they make money.You can borrow from your parents or family or relatives. They usually won't charge you interest or if they do, it will be a smaller amount than if you took out a loan. You can take a loan out from the bank. But you must be 18. You can also use a credit card to borrow money on credit.An interest rate that does not change over time. For example a fixed rate loan of 3% over 15 years that you take out when you buy a house.This is the current asking price that someone is willing to sell stock for on the open market.

19. What is a credit report?

You can borrow from your parents or family or relatives. They usually won't charge you interest or if they do, it will be a smaller amount than if you took out a loan. You can take a loan out from the bank. But you must be 18. You can also use a credit card to borrow money on credit.This is the current asking price that someone is willing to sell stock for on the open market.A credit report is a report on your ability to pay back loans and credit cards. It has a score on it that lenders use to determine interest rates you qualify for to get a loan. If you miss payments or default on a loan your credit score goes down and you get a terrible rate for a loan. You may not be able to get a loan at all if you ruin your credit rating. It can take years to rebuild it.An interest rate that does not change over time. For example a fixed rate loan of 3% over 15 years that you take out when you buy a house.

20. Ways to eliminate or reduce debt

You can borrow from your parents or family or relatives. They usually won't charge you interest or if they do, it will be a smaller amount than if you took out a loan. You can take a loan out from the bank. But you must be 18. You can also use a credit card to borrow money on credit.This is the current asking price that someone is willing to sell stock for on the open market.An interest rate that does not change over time. For example a fixed rate loan of 3% over 15 years that you take out when you buy a house.Stop all frivolous spending. Going out to eat, wasting money on impulse buys at the store, and buying things you don't need will help save money. Create a budget and live within your means. (This is cash flow...more money going in, than going out.). Allocate money in the budget to reduce the loans or credit card debts you have before spending money on fun items. You may need to: get an extra job, do extra chores, or sell items you don't need.

21. How the APR measures the true cost of a loan

This is the current asking price that someone is willing to sell stock for on the open market.The APR is the Annual Percentage Rate on a loan. It includes the interest rate for the loan, and any origination fees charged by the lender. It will always be higher than the interest rate because it includes the fees. This allows you to compare APR's from different banks to see who has the best deal on a loan. You want the smallest APR when you take out a loan, so compare lenders APR's and go with the lowest one.You can borrow from your parents or family or relatives. They usually won't charge you interest or if they do, it will be a smaller amount than if you took out a loan. You can take a loan out from the bank. But you must be 18. You can also use a credit card to borrow money on credit.An interest rate that does not change over time. For example a fixed rate loan of 3% over 15 years that you take out when you buy a house.

22. Investing

This is the current asking price that someone is willing to sell stock for on the open market.An interest rate that does not change over time. For example a fixed rate loan of 3% over 15 years that you take out when you buy a house.You can borrow from your parents or family or relatives. They usually won't charge you interest or if they do, it will be a smaller amount than if you took out a loan. You can take a loan out from the bank. But you must be 18. You can also use a credit card to borrow money on credit.A longer term strategy to make your money make more money. You usually buy stocks or mutual funds, or a CD or Bond when investing. But you can also buy property or coins or anything you think will gain in value over time. Remember investing can have risk and you may not have access to the money right away. So you balance this with a savings account or checking account where you store quick access funds.

23. Variable Rate

This is the current asking price that someone is willing to sell stock for on the open market.An interest rate that does not change over time. For example a fixed rate loan of 3% over 15 years that you take out when you buy a house.You can borrow from your parents or family or relatives. They usually won't charge you interest or if they do, it will be a smaller amount than if you took out a loan. You can take a loan out from the bank. But you must be 18. You can also use a credit card to borrow money on credit.An interest rate that changes over time. This can be with a loan or a savings account. People with bad credit sometimes get loans with variable rates because that is all they can get. Then the rate goes up over time and they can't pay it and they default on the loan.

24. Publicly traded stock 'price change from the previous day'

25. Principle

The initial amount you take a loan out for. So if you take a loan out for $100, the $100 is the principle. If you paid 10% interest the total cost of the loan would be $110, but the principle is $100 and the interest paid is $10.You can borrow from your parents or family or relatives. They usually won't charge you interest or if they do, it will be a smaller amount than if you took out a loan. You can take a loan out from the bank. But you must be 18. You can also use a credit card to borrow money on credit.An interest rate that does not change over time. For example a fixed rate loan of 3% over 15 years that you take out when you buy a house.This is the current asking price that someone is willing to sell stock for on the open market.

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25 Questions

❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

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Without work one finishes nothing. - Ralph Waldo Emerson© 2026 Fatskills.com

All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | OSHA Basics Quiz | What Should We Know?
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Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com