Budgeting Basics
What is the term for the total amount of money you plan to spend each month?
Budget
What type of account is typically used for short-term savings and offers access to funds?
Savings Account
Credit Score
What is the term for the amount of money you earn before any deductions are taken out?
Gross Income
What is the type of savings designed to be used in unexpected financial emergencies?
Emergency Fund
Name three of the key components that should be included in a personal budget?
Housing, Food, and Bills
Name two investment that has a "high risk" but the potential for higher risk compared to savings account?
What is the maximum amount of money that a lender will allow you to borrow on a credit card?
Credit Limit
Term for income earned from investments, such as dividends and interest, rather than from employment?
Passive Income
Financial Tool that ensures your assets are distributed according to your wishes after your death?
Will
What financial tool can help you manage your budget by showing your income and expenses side-by-side?
Budget Spreadsheet
What is the term for profit earned from an investment over time?
Return on Investment (ROI)
What is a loan is typically used to purchase a home?
Mortgage
Term for the portion of income not subject to tax, often for dependents?
Tax exemption
What is the retirement savings plan commonly offered by employers in the US?
401(k)
Type of expense varies in amount each month, such as groceries?
Variable Expenses
What is the name of the interest that is calculated on both the initial principal and the accumulated interested from previous periods?
Compound Interest
Term refers to a loan secured by collateral such as mortgage?
Secured Loan
What is the deadline for filing federal income tax returns in the US?
April 15
Term for the retirement accounts that offers tax-free withdrawals for retirees funded with after-tax dollars?
Roth IRA
Term for the money that remains after deducting all planned expenses and savings from your income, which is used for non-essential purchases?
Disposable Income
Term for spreading out investments to reduce risk
Diversification
What is the term for the interest rate charged on the unpaid balance of a credit card?
Annual Percentage Rate (APR)
What is the form you receive from your employer that details your earnings and taxes withheld for the year?
W-2 Form
Type of insurance that provides financial protection against medical expenses?
Health Insurance