Financial Literacy and Online Safety Flashcards

A set of vocabulary flashcards based on lecture notes covering cybersecurity (scam prevention) and personal finance (investing, credit, and banking).

Scammer Trust Tactics

Pretending to be from trusted companies or government agencies, using fake websites or caller IDs, and acting friendly/urgent.

Common Signs of a Scam

Requests for money or personal information, pressure to act quickly, and deals that seem too good to be true.

Sweepstakes Scam

Fake prize winnings that require payment for taxes or fees upfront or personal information first.

Scammer Tactics

The use of fear, urgency, fake promises, impersonation, and emotional manipulation.

Employment Scam

Fake job offers that promise high pay for little work while asking for money or personal information.

Online Shopping Scam

Fake stores or products online where items never arrive or are counterfeit.

FIRE Movement

Financial Independence, Retire Early; a strategy focused on saving and investing aggressively.

Overdraft

A condition resulting in bank fees, a negative account balance, and possible declined transactions.

Money Market Accounts

Accounts offering higher interest rates and easy access to funds while being FDIC insured at banks.

Certificate of Deposits (CDs)

A savings account with a fixed interest rate and term that carries a penalty for early withdrawal.

Secured Credit Card

A type of credit card that helps build or rebuild credit and typically has an easier approval process.

Equifax

A major credit reporting agency that tracks credit history and scores.

Diversification

The practice of investing in multiple assets like stocks, bonds, and real estate instead of a single asset.

Compound Interest

Interest earned on both the original money and previous interest accumulated.

Credit Score Negative Impacts

Late payments, high debt, too many credit inquiries, and bankruptcy.

Risk Tolerance

The ability and willingness to handle investment losses, primarily impacted by age, financial goals, income, and comfort level.

Index Fund

A mutual fund or ETF that tracks a market index.

S & P 500

An index of $500$ large U.S. companies.

Investment Motivations

Building wealth, saving for retirement, and beating inflation.

Stock

An ownership share in a company.

Credit Score Components

Payment history, amount owed, length of credit history, new credit, and credit mix.