Can You Answer This Money Trivia?

This episode focuses on enhancing financial literacy through a mix of engaging money trivia and deep dives into essential financial terms and concepts.

1. Financial literacy can be enhanced through engaging and relatable content.
2. Understanding basic financial concepts like compound interest and asset allocation is crucial for effective personal finance management.
3. Humor and relatability can make complex topics more accessible and engaging.
4. Practical tools, such as budgeting apps, are essential for implementing financial knowledge.
5. Continual learning and application of financial principles can lead to better financial decision-making.

1: Introduction and Trivia Challenge

The hosts introduce the episode's theme and engage in a trivia game to set a light-hearted tone. They discuss the importance of humility in learning. George Kamel: "Nobody likes to know it all, Rachel." Rachel Cruze: "It's going to be a wild and humbling time."

2: Deep Dive into Financial Terms

A thorough breakdown of essential financial terms like compound interest, asset allocation, and stocks and bonds, explained in a listener-friendly manner. George Kamel: "Compound interest is essentially the magic sauce that makes your money grow exponentially over time." Rachel Cruze: "Asset allocation is like not putting all your eggs in one basket."

3: Practical Financial Tools

Discussion of practical tools like budgeting apps and financial services that can help listeners apply the episode's teachings. Rachel Cruze: "Protecting your privacy online isn't just for influencers and superstar athletes." George Kamel: "Delete me is like a table behind velvet rope inside a private party room."

1. Download and use a budgeting app to track and manage your finances.
2. Regularly educate yourself on financial terms and concepts to stay informed.
3. Diversify your investments to manage risks and maximize returns.
4. Evaluate and utilize financial tools and resources to enhance privacy and security.
5. Participate in financial education events to deepen your understanding and apply concepts effectively.

If “financial literacy” is as foreign to you as our obsession with avocado toast, that could cost you a lot more than an embarrassing moment at brunch. Join Rachel and George for a breakdown of all the financial terms you need to know. But don’t worry, they’ll be attempting some random trivia of their own.

People

Rachel Cruze, George Kamel

Companies

Ramsey Network

Books

None

Guest Name(s):

None

Content Warnings:

None

George Kamel
What's up, guys? This episode is brought to you by our favorite budgeting app, everydollar. Rachel and I love everydollar because it is the easiest way to take control of your money, build the right habits, and make progress on your goals. You can download it for free on the App Store or Google Play today.

Rachel Cruze
Hey, guys, I'm Rachel Cruz. I'm George Campbell, and this is smart money happy hour. Cheers, George. Cheers.

George Kamel
Mmm. She's salty. Wow, that's good, though. That's good. So this is the show with two friends who have.

Fuck, Zoolander. So this is the show where two friends who happen to be money experts talk about what you're talking about. Everything from pop culture, current events, and money. Is there anything you just don't know anything about, Rachel?

Rachel Cruze
Cars. Like finance, politics, pop culture, history. What's something you truly like? Someone brings this topic up, you're like, I'm out because of your cluelessness. It might be history.

Remember I thought Picasso was in, like, the 15 hundreds, which is fair, but. You know, we all have our blind spots. Yeah. And for some people, it's financial literacy. That's something I would hope to know.

These terms, it's like the offense and defense of money, right? These terms are thrown out. Net worth, asset allocation, you know, like these, like, just terms. And for some people, they don't know where to start. So we're gonna break it all down this episode, George.

George Kamel
That's right. We are. That's what today's about. Financial terms and concepts. You need to know.

So. Nobody likes to know it all, Rachel. Just wanna remind you. No, we don't. Humility is am I know it all.

Rachel Cruze
Why'd you look at me like that? Yeah. What? We're gonna mildly embarrass ourselves by attempting a round of random trivia, courtesy of producer Skylar. So we're gonna start with the non financial terms, just so that we have a dose of humility.

Cause we have. We're gonna nail the financial ones, but we're not that smart. So it's gonna be a wild and humbling time. But first, Rachel, let me let you know what we're sipping on here. In case you're wondering what this.

Yeah, it's really pretty. Is that all the nice things you can say about it? It's limey. Okay? And salty, so it gives margarita vibes.

George Kamel
It's a mocktail. So feed this to your children at home to get their sodium for the month. And enjoy this mocktail margarita. The rating and reveal the cost per glass at the end of the episode. Let me take another sip just to really get a vibe.

Rachel Cruze
Let me say. I will say this. It is very hard to make a mocktail margarita. It hits when you don't have tequila, though. Like, take another sip.

That's a tough. That's a tough sell. Close your eyes. You're on the beach. You poured salt water in here.

It is really salty. It's good, though. I like it. Yep. We're gonna do it.

We're gonna do it. And there's a trend going on on social media. I'll fill you in. Rachel. There are these people that go around asking funny men on the street, and they ask basic things that people should know, and the answers are fairly shocking.

George Kamel
And I want to test you. Do you know all seven continents off the top of your head? Okay, we got Asia, Africa, North America, South America, Antarctica, Europe, and Australia. Yeah. Yeah.

Rachel Cruze
That's some public education for you. How about this one? Let's throw a little curveball. You know the capital? Rhode Island.

Providence. Providence, Rhode island. Oh, my gosh. Yes. How good do you feel?

I feel so good right now. Raygon. Are we doing a quiz? Is this what I hear in this episode? Let's do it.

Give it to us. Skylar. I'm ready. Are you ready for the Skylar quiz? Okay.

And then we're gonna do one, two, three. And we answer. Don't look at your paper, George. Oh, okay, George. I'm not looking.

George, cover up your part. So we're gonna do a quick speed. Round, eyes closed, head bent, head bowed. And we go, one, two, three. And then we both answer.

Okay, go. Correct. Which us president was a licensed bartender? One, two, three. Roosevelt.

Skylar
It's Abraham Lincoln. Lincoln. What? They didn't have licensed bartenders back then? That's.

Rachel Cruze
I don't believe it. Okay, keep going. What is Barbie's little sister's name? One, two, three. Margaret.

Skipper. Skipper. Margaret. What's Barbie's last name? She doesn't have one, but she.

George Kamel
Her litter. Skipper. She has a sister, Skipper. Yes. All right, next one.

Skylar
What was the name of Ramsay's board game? Act your way, George. One, two, three. They're not doing a countdown. It's every man for himself.

Rachel Cruze
Wow. Fine. Here we go. The unicorn is the national animal of which country? I see Netherlands, Scotland.

Oh, wow. What a special. It all felt right. What a special. What a special animal.

Yeah. There's so many real animals. I could choose Scotland, though. Why choose a mythical creature? I guess that one.

Skylar
Our last question is, what was the Ramsay show originally called? I love gonna do it at the same time. Do you know it? Three, two, one. The money.

Rachel Cruze
The money game. Nice. I still love that name. It's a great. Yeah, great name.

You guys, protecting your privacy online isn't just for influencers and superstar athletes, Rachel. Enough about me. Everybody. Everybody needs to take steps to protect their info from data brokers. That kind of privacy can make you feel like a celebrity.

George Kamel
And that's why I use delete me. Delete me is like a table behind velvet rope inside a private party room inside exclusive after hours club with bouncers named like brick and tiny. That is big time privacy. That's right, George. Okay, so deleteme finds and removes your info from hundreds of data broker websites.

Rachel Cruze
Then they send a simple report outlining what they did. Yep. And I've got my report right here from last month. Delete me has already saved me about 13 hours of clicking around, trying to find and remove that data on my own time. And having people to keep your personal info off the web for you.

George Kamel
That is Beyonce level, Rachel. Yeah, it is. So get 20% off your delete me plan when you go to joindeleteme.com smartmoney, or click the link in the description. Protect yourself from the risks of identity theft and online scams. Go check them out.

Joinedelite me.com smartmoney let's play the money game, Rachel. It's our own money game. I'm going to ask you a question. You can toss one back to me, and one by one, we'll do our part to make sure all of the people out there can impress their parents and friends with their financial terminology. Yeah.

Rachel Cruze
So we're gonna go through some terminology, George, and see how we're doing here. Okay. All right, let's do this. I guarantee that people listening won't know at least a few of these, or at least know the full correct sort of definition. We'll make it fun and conversational.

George Kamel
We're not gonna go full websters on you. Yeah. Okay, let's go. First number one, compound interest. Oh, that's a good one.

You hear about it a lot and you're like, that sounds good. I hear it's a good. What a good thing. I'm not sure. This is essentially the magic sauce that makes your money grow exponentially over time.

And it's through the power of earning interest on top of your interest. So you start with 10,000. You earn 10%, right? That's 1000. Well, now you have 11,000, earning 10%, which is more than 1000.

And you see, as that snowball starts to roll, it gains more snow. That's the power of compound. Interesting. When you put money in, you're not just making money on just the money you put in. Over time, you make money on the growth of that money, too.

Rachel Cruze
So it is, it's like this. Your money's not doing anything. Yeah, your money's making money, and it's a beautiful thing. All right, next, asset allocation. Such a ten dollar word.

George Kamel
It almost bothers me how like, it sounds so pretentious. I know, but here's all this is. It's the art of spreading your investments across different types of assets. When you think of an asset, think of stocks, bonds, real estate. And what this does is helps you manage risk and maximize your returns.

So you've heard the term, you don't want all your eggs in one basket. That's what asset allocation is, making sure that you have different types of assets. Like we say, mutual funds. You want four different types of mutual funds. Yeah.

Rachel Cruze
And that's specifically in investing. But when we met with our smart investor pro, they're always looking at our percentages, too. Like how much is in your house, how much you have in retirement, how much you have just cash. Right. So you do want to make sure there's a good amount spread out so that you're able to get to what you need to.

But yet if something goes down, usually the other market isn't. So, yeah, it's a good allocation to have. Risk management. Yep. Love it.

Okay, stocks and bonds. That's a fun one. Stocks and bonds. We hear about this a lot. It's a fun thing to say.

What does it mean, stocks and bonds? Well, these are two sides of the investment coin. Yeah. So stocks on one hand is like you own a very small portion of a company. So if a company is publicly traded and you buy a stock into it, then you own, I mean, realistically, zero, zero, 1% of it.

Right. But when, as that company grows, depending on how much money you have invested in it, you make more money. So that's the stock end of it. Whereas bonds are a little more conservative. They don't have as big returns, but they also don't see the losses that stocks can have.

Bonds. What's interesting is that bonds are actually debts. It's a debt instrument that governments can use or other corporations to basically give you an iOu. So they'll say, rachel, buy one of our bonds and we'll pay you back with interest. And so it's sort of a more, it's a more guaranteed investment, but it's not very impressive at the end of the day.

Yeah. You don't get a large return. The S and P 500 joining another buzzword I know. That's a fun one. Yeah.

George Kamel
You know what S and P stands for? Standard and poor. Standard and poor. And it's basically the measurement of the top 500 companies. Yeah.

Rachel Cruze
So you have, like, the Dow Jones is one measurement, but the S and P, a lot of people like to look at NASdaQ. Yeah, that's another one. Yeah. That's a fun one to say. So this is, like, tech companies, all this stuff, but the S and P is 500 largest companies.

So you can really get a good picture of, like, what the s and P is doing is usually what the market's doing. It's a good benchmark for how the economy is doing as a whole in America. That's right. Cash flow. Ooh.

George Kamel
This is one that's used by a lot of, like, the gurus out there. It's a hot thing to say, like, bro, cash. It's all about cash flow. We've all heard that this is essentially the lifeblood of financial success. And so this is about the money coming in versus the money going out.

And cash flow helps you build wealth. So a lot of people think cash flow in terms of passive income. So the cash flow from my rental property or my investment accounts. But cash flow, for some people can just mean my income. Yeah.

My take home, literally. The cash coming in to you. The flow of cash. The flow of cash to you. Yes.

Rachel Cruze
Let's go. Tax credits versus tax deductions. Oh, so a tax credits will minimize your actual tax bill. So it's like, okay, you owe this much in taxes. Well, tax credit will shrink that where a tax deduction shrinks your income on how you're taxed.

George Kamel
Oh, yeah. So the deduction is on the front end, credits on the back end. Yep, that's right. Let's go. Equity, George.

Ooh. Also a fun one to talk about. This is essentially your ownership in something. So the equity you have in your house is how much of it you actually own compared to your mortgage, which is how much you don't own what you owe. Yep.

Rachel Cruze
And some people take their equity and borrow on it. Don't do that. It represents your ownership in an asset. That's right. Um, rate of return, George.

This is the scoreboard of investing. So, basically measures how much your money is making. So, you know, average rate of return, we always say, is between ten and 12% in the market. But. But when you look at it, this is how much percentage my money is making on itself.

That's the rate of return. I like that. And one of my favorites, Rachel, the rule of 72. Oh, that's a good one. This is an interesting one.

George Kamel
This is sort of a nifty mental shortcut that will show you how long it will take for an investment to double. And the way it works is you calculate by dividing 72 by the rate of return. So, for example, let's say the rate of return is 10%. Well, you take the rule of 72. That means that your money would double every 7.2 years.

So it's a fun way to think about if the market does 10%, my money, my 200,000 in my 401k, would double the 400,000 every seven years if I get an average rate of return of 10%. Term life insurance, George. That's life insurance, you guys, is a, it's a must. But there's different products of life insurance out there. So you got whole life, universal life, term life.

Rachel Cruze
So term life is only for a. Term specific amount of time. 15 year, 20 year term, ten year term, you get to pick. It's usually the least expensive option out there. And our goal for you guys is to be self insured, to get to a point where you don't owe anyone anything, you're paying off debt, you have good investments.

So when it gets to that point that you're like, oh, I may not even need life insurance because I have no debt and tons of investments, anyone that is dependent upon me is going to be fine. They're going to be taken care of. So that's the goal. That's one reason whole life insurance is like a. That's one point, but there's a lot of others because it's very expensive.

Don't mix your investments and your insurance, which like a whole life would, or even a universal life. So term life insurance, it's the way to go. Go to zanderinsurance.com. It's awesome. That's where Winston and I get our insurance.

George Kamel
I get mine through them, too. Yep. That's great. But get life insurance. You guys get life insurance.

That's good. A lot of helpful terms here. I don't know. How was that pop quiz. What do you think?

I think we did pretty good. And I think some of those people at least would go, I need to look into that. I didn't fully understand it, or I've never understood it that simply. So we try to keep the cookies on the bottom shelf for you all. And Rachel, if anyone wants to know more about these, and you don't want to just Google around our website, ramsaysolutions.com.

We have tons of articles that break these down in real simple ways, and I hope it helps. I use them sometimes to reeducate myself on what's going on and what the deep dives are on these terms. So check it out. Ramsaysolutions.com is such a great place. We have calculators to help you.

Tons of articles, financial peace, university. All of these are meant to educate you and empower you on your financial journey.

Well, hey, you guys, I know investing can be really confusing, and there's so much information out there. And have you ever wondered, how much should I invest? And where is my 401K set up in a way that's going to be able to achieve my retirement dream? Well, if those questions are out there, you are not alone. And having a solid investment plan that you're confident in will help you make the right decisions.

That's why I want to tell you about a two night virtual event that's coming up. It's called Dave Ramsey's investing essentials. On May 21 and 22nd, Dave will unpack everything that you need to know when it comes to investing and retirement. From 401 ks and mutual funds to real estate, you can even watch it anywhere you are. Even submit questions for Dave to answer live.

You guys, investing is one of the most powerful tools for wealth building. So you need to be doing this. If you are debt free and have three to six months of expenses saved. And you need to buy your ticket today. It's $249, so buy it today@ramsaysolutions.com.

Invest with confidence.

Rachel Cruze
All right, George, it's almost the end of the episode, and we close out every episode with guilty as charged. And this is where our producer, Skylar, gives us a new guilty as charged question every week. And if we are guilty, we take a sip. Skylar, this is from a listener, Ellen Dunlap, ten. And Ellen is asking, have you ever cut someone off in traffic and then regretted it?

Oh, man. Yeah, I'm sure I have. Do you know what I do? I kind of. I've heard this term.

I think it's for my brother in law, who used to live close to Boston. You talk about this. It's a bostonian thing. Aggressive driving, bullying. That's what he'd call it.

Just like, you kind of bully your way in. If you got to get in, you gotta. Oh, keep just nudging. Nudge. You gotta keep going.

And then I do the, like, sweet, like, thank you. Thanks. Rachel gets away with it. Yeah. I'm a happy.

I'm a happy cutter offer if I have to. I really try not to, though. And I hate when people, like, tailgate you. Oh, yeah. Well, I found I used to do this more, but there's serious road rage in America today.

George Kamel
And I'm not like some people are willing to just risk their entire life in order to get back at you. And that's why I don't. I don't do it anymore. But there was one time driving to New York with my brother. He's sleeping in the passenger seat.

Rachel Cruze
Yeah. And I, you know, I had to get in before the toll at the turnpike in New Jersey. New Jersey Turnpike. The turnpikes. And I cut a guy off.

George Kamel
And so what he did, he hard brake checked me so fast that I almost slammed into him after that. Oh, my gosh. And so, yeah, my brother woke up the hard way on that one. George almost hit his head on the windshield. So I learned my lesson from that.

Wow. Don't cut people off. Don't cut people off. Even up in New Jersey? Especially in New Jersey.

Those people have nothing to lose. Not a lot going for them. I'm kidding. I love new. I have friends in New Jersey, eboos from New Jersey.

And she made this drink, which is very salty, much like the people of New Jersey.

Might as well call this the Jersey shore. That's my new name for eboos. Mocktail margarita Jersey. I love people from Jersey. Salty, much like the Jersey shore.

Rachel Cruze
So good. Oh, love it, love it. All right, you were loving this mocktail. Look at this. Who finished their drink first?

George Kamel
It was like a cold soup. It was like a gazpacho. It was so much sodium. Okay, here is what's in the mocktail margarita. Rachel, can you guess what's in it?

Rachel Cruze
Salt. Number one ingredient on the board. Ding. What's your rating for today's drink? Heebieu.

I'm so sorry. I'm gonna go four out of ten. It's fair, it's honest, it's balanced. Yeah, well, you're going, like ten out of ten, George. I'm gonna go.

George Kamel
I'm gonna go. I'm gonna go six out of ten. Okay. I think there's something I like about the pain. You know what I mean?

Every time I take a sip of my head, like, my stomach is getting stronger. Your body's just screaming, water. Yeah, water. I'm destroying the lining of my stomach by drinking this. But it will make me stronger in the end.

Rachel Cruze
Just pain as beauty, George. Just keep going. Keep going. That's my rating. Cost breakdown, though.

George Kamel
Very affordable. An affordable way to get your sodium. $1.23 per glass. And, hey, I've been on a health cake, and sodium is the new thing. They.

Element packets. You have those. They want you. Yes. Electrolytes.

So not a spodium, but reach out. Element people are. They're all about the sodium these days. Apparently, we're not getting enough. I thought we were getting too much.

Rachel Cruze
Well, that's what the government wants you to think. Just kidding. The government's like, don't use butter. Use butter. They're like, they said, don't use butter.

Cholesterol in the eggs. Eat eggs. It has good protein, so whatever the. Government says not to do. Rachel's like, do I get in the sun?

Yes, it is true. I'm like a. I am. I'm on a rebellious kick for my health. Wow.

Wow. That was very strong. I don't know if I'm that passionate about it, but I do know sodium. The government's like, pay your taxes. And Rachel's like, I'll never pay my taxes.

Oh, I do. I do. I'm honest. There. Okay.

George Kamel
Here's the ingredients. Oh, I thought you were. It's not just salt. Oh, okay. Rachel thought it was just salt.

No go. There's lime juice. Yeah. You can taste that. Yes.

There's lemon juice. Oh, okay. Simple syrup. Wow. A little sweetness.

Could use maybe a little more of that club soda. Add a little bit. She put in simple syrup. She did it. But it's simple.

You didn't add simple syrup. Oh, you did. Okay. Just a little. And finally, and most importantly, pink himalayan.

Rachel Cruze
Salt, which we're tasting. I feel like I'm in the himalayas right now. It's in my mouth. Seen salt off a mountain? Salty air of the mountains.

Oh, man. That's pretty good, though. So good. Well, George, it's closing time. Sad.

You guys, thanks for being here for the old pop quiz. Can I be honest with you, Rachel? Learning stuff. People are mad at you, the listeners. Cause the show is called smart money Happy Hour.

George Kamel
And you only go, like, 30 minutes. They want a full hour. Yeah. Co host. You call the shots.

Rachel Cruze
I know. And they talk about me moving my hair. I do move my hair a lot. I'm sorry. So all of you know, we read the comments.

I see you. I hear you. I feel you. It is what it is. So.

All right. So make sure to subscribe, leave a review. We're here for you guys. And we'll see you next Thursday on an all new episode of Salt Money Happy Out.

Rachel Cruze
And we'll see you next Thursday on an all new episode of Salt Money Happy Out.