Money Management Tools
This type of deposit account is used to set aside money for short-term goals (emergencies or vacation), while maintaining access to your funds anytime
What is a Saving Account
A financial plan that Measures your income vs expenses during a timeframe (often monthly), to help you manage & save money
What is a Budget
Credit card balances should never exceed this % of your credit limits
What is 35% (or 1/3)
"Capacity, Capital, Character, and Condition"
What are the 4 C's of Credit
This type of deposit account is used for everyday money management, purchasing, spending and paying bills
What is a Checking Account
This is when your income is greater than your expenses
"Spending less than you earn"
What is a Budget Surplus
35% of your monthly income should go towards this expense
What is Housing
This type deposit account pays higher interest rates for investing your money for set period of time. The longer the timeframe, the higher interest you'll earn. But, there are penalties for early withdrawal
What is a Certificate or CD
This is when your expenses are greater than your income
"Spending more than you make"
What is a Budget Deficit
Repayment strategy that focuses on paying off your smallest debt first
What is Debt Snowball
Three-digit number that lenders use to determine the level of risk you present and how likely you are to repay a loan Higher number = better rates
What is a Credit Score
Payroll checks are automatically sent electronically to your bank accounts
Typically, your employer helps you set this up
What is Direct Deposit
This type of saving goal typically take 5+ years to achieve i.e.) buying a home or planning for retirement
What a Long-Term Goal
Compares how much money you OWE to how much you EARN. Lenders use this % to determine whether or not to approve you for a loan
What is Debt-to-Income
This is the national average credit score
What is 695-705
This is an online banking tool to setup automatic payments
Helps ensure payments are made on time
What is Bill Pay
Acronym for "Specific, Measurable, Achievable, Realistic, Time-bound"
What is a SMART Goal
At least 10% of your monthly income should go towards this
What is Saving
These are the three major credit bureaus
Who is Experian, Equifax, TransUnion