In order to protect yourself and other drivers, auto insurance is mandatory.

Safe driving classes can lower your insurance rate, as can some safety features within cars.

Despite still being in high school, taking out a life insurance policy will provide financial security to your family in the event of a tragedy.

Health insurance covers medical care.

A bull market is when stock prices go up whereas a bear market is when stock prices go down.

Stocks are units of ownership that are “traded”- bought and sold.

Stocks are shares of businesses sold to help them grow, and you invest expecting your stocks to grow in value.

Certificates of deposit require specific amounts to remain untouched for a certain length of time.

If you sell a stock after its value has appreciated, you make a profit on your investment.

Mutual funds include stocks, bonds, and real estate and are overseen by a fund manager.

The objective is to see a profit on your investment

You have to be at least 18 or 21, but you can open a custodial account sooner if a parent agrees to be your co-signer.

You need a cosigner to apply for a credit card when you are 18, and you can apply independently when you are 21 years old.

You are borrowing money from the bank, credit union, department store, etc.

The minimum monthly payment is a small percentage of your total balance.

You usually have 25 days to pay your bill before being charged a late fee up to $35

Payment history, how much you owe and what kinds of credit you use are all included in your credit score, along with the length of your payment history and new credit applications.

Don’t pay with credit unless you know you can pay it back, always pay within the grace period, and try to pay your bill in full when possible.

Using too many credit cards or charging too much can create debt that may be difficult to pay back.

ATM cards give you direct access to your money and debit cards withdraw from your account immediately when making a purchase.

In order to determine what you can spend versus what you need to save, you should sort out your short-term and long-term bills and purchases

Banks charge more interest for loans than the interest it pays people with savings accounts, so banks earn a profit.

Simple interest is based on a small percentage of the money you deposit and compound interest is based on your deposit plus the interest you have also earned.

Divide the number 72 by the annual interest rate of your savings. The higher the interest rate, the faster you can double your savings.

Traditional saving accounts, money market deposit accounts, and certificates of deposit are all usually offered in banks.

If you don’t have enough money in your checking account, you will incur penalty fees and potentially hurt your credit score.

You want to avoid bounced checks and overdrawing your account so that your credit rating isn’t affected and you aren’t subjected to additional fees.

Merit-based scholarships, need-based scholarships, and federal grants are all options, along with sports scholarships.

Federal student loans often don’t expect payment until after you graduate, have a lower interest rate than private loans, and may reduce your payment if you have trouble paying it back.

Shorter loans mean less interest on your loan over time, and using a cosigner with better, more established credit then you will save money. Applying for more than 3 loans can affect your credit score, which may increase your interest rate.

Beyond monthly car payments, you will be paying for insurance, gas, and maintenance. Make sure that you factor in all of these extra costs.

An adult co-signer with great credit and employment history can help lower your car loan.

The value of the car does depreciate over time, and monthly payments are usually lower when leasing a car. A factory warranty translates into minimal out of pocket repair costs, which comes with a lease.