Budget Basics
The term for the amount of money you plan to spend on different expenses?
What is a budget?
This type of account is used to store money for future use with easy access.
What is a savings account?
This three digit number represents your creditworthiness and can affect your ability to get a loan.
What is a credit score?
This is a tax you pay on your earnings to the federal government.
What is income tax?
This term refers to buying something on impulse without planning or budgeting.
What is impulse buying?
This popular budgeting rule recommends spending 50% on needs, 30% on wants, and 20% on savings or debt.
What is the 50/30/20 rule?
This basic investment type involves owning a part of a company.
What is a stock?
This type of card allows you to borrow money for purchases, to be paid back monthly.
What is a credit card?
This is the deadline for filing federal income taxes in the United States, unless an extension is requested.
What is April 15?
Before buying a big ticket item, it is wise to check prices at multiple stores or websites, a practice known as this.
What is comparison shopping?
What are expenses?
This type of interest earns on both the initial amount and on the interest that accumulates over time.
This is the term for the amount of money you borrow on a loan, not including the interest.
What is a principal?
This type of tax is added to most goods and services you purchase and varies by state.
What is sales tax?
When shopping, these discounts given by stores or manufacturers can help save money if you submit a request.
What are rebates?
This type of savings is set aside for unexpected expenses and is considered essential in every budget.
What is an emergency fund?
This type of retirement account is often offered by employers in the U.S., and sometimes the employer matches contribution.
What is a 401(k)?
This term refers to the amount charged by a lender for borrowing money, expressed as a percentage of the principal.
What is interest?
This form, often filled out when starting a job, determines how much tax your employer withhold from your paycheck.
What is a W-4?
This type of spending is not essential and can usually be reduced or cut when budgeting, covering things like dining and entertainment.
What is discretionary spending?
This financial strategy involves setting a maximum spending limit for each category and adjusting throughout the month to avoid overspending.
What is a spending cap?
What is diversification?
The term for the total cost of a loan over time, including interest and fees.
What is the annual percentage rate (ARP)?
This type of tax is deducted from wages to fund Social Security and Medicare programs.
What is the payroll tax?
This principle advises evaluating the long term value of an item based on its durability, cost per use and quality.
What is cost-per-use analysis?