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Created with Fabric.js 1.4.5 10 Investing Tips for Teens 1.The sooner you start managing your money, the richer you'll be 2. It isn't just about money 3. When you borrow, you are kissing goodbye to "future" income 4. Don't get caught in the minimum-payment trap 5. You control the risk. 6. If in doubt, just say no 7. When you borrow, you are kissing goodbye to "future" income 8. Balance a checkbook 10. Consider all costs Roth IRA's An individual retirement plan that bears many similarities to the traditional IRA, but contributions are not tax deductible and qualified distributions are tax free. 401k plan A qualified plan established by employers to which eligible employees may make salary deferral (salary reduction) contributions on a post-tax and/or pretax basis. Simple Interest Compound Interest A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate by the principal by the number of periods. Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan. Compound interest can be thought of as interest on interest, and will make a deposit or loan grow at a faster rate than simple interest, which is interest calculated only on the principal amount. Periodic Deposits Deane Alexis Sofia Lintag PSA The investment made in form of equal deposits over a time period regularly. Pre Tax (of income or profits) considered or calculated before the deduction of taxes. Annual Maintenance Fee Save your money and put it in a 401k. are fees that are paid to maintain a granted patent in force
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