Returns
The primary goal of budgeting
profiting
unforeseen expenses can
go overbudgets
One of the most important factors that contributes to your credit score is your
payment history
This is the amount of money you borrow when using a credit card.
What is the princiapal (or credit balance)?
envelope budgeting
dividing money into different envelopes for different sections
controlling your budget is saving
costs
lower budgets can feel
restricting
You earn a salary of $40,000 per year and decide to save 20% of your gross pay. You set a goal of
creating a $16,000 emergency fund. How long will it take for you to achieve your goal?
2 years
This is the yearly cost of borrowing money, expressed as a percentage.
What is APR (Annual Percentage Rate)?
zero based budget
income and expenses are equal
what do you get more money for
the important things
In the “Pay Yourself First” method, what should you do before paying bills?
saving
Keeping her credit card balance low relative to the credit limit helped Lisa improve her _________________ a key factor in calculating her credit score.
credit utilization rate
This is where banks get the money to lend out money
What is consumer savings account?
define budgeting
Budgeting is a calculation plan that is usually financial for a defined period of time
returns and resource utilization can lead to
operational efficiency
overlooking expenses
can go overbudget
Lenders look at your _________________ to determine how reliably you have managed borrowing and repaying money in the past.
credit history
When you only pay the minimum payment, interest is charged on this portion of your balance.
What is the remaining balance?
budgeting is the process of
creating a spending plan
helps you realize
how much you spend
A student receives a $1,000 monthly income. Using the 50/20/30 rule, how much should be allocated to
needs?
500
s a 3-digit number, typically between 300-850, that potential lenders, landlords, and other parties may refer to.
credit score
This is the lowest amount you must pay on your credit card each month.
What is the minimum payment?
incremental budgeting
adjusting the budget over time to match the needs better