Budgeting
What is a budget?
A plan for managing income and expenses
What is a credit score?
A number that helps lenders evaluate credit risk.
What is an emergency Fund?
Money set aside for unexpected expenses.
What is a stock?
A share of ownership in a company.
What is a checking account commonly used for?
Everyday transactions such as purchases and paying bills.
What are fixed expenses?
Expenses that generally stay the same each month
What does APR stand for?
Annual Percentage Rate
What does interest mean on a savings account?
Money the bank pays you for keeping funds deposited.
What is a bond?
A debt investment in which an issuer borrows money from investors.
What is a debit card?
A payment card that generally draws from a linked bank account.
What does the 50/30/20 budgeting guideline represent?
50% needs, 30% wants, and 20% savings and debt repayment
What can happen when you miss a loan Payment?
You may face late fees and damage to your credit
What does APY stand for?
Annual percentage yield
What does diversification mean?
Spreading investments across different assets to manage risk.
What does FDIC stand for?
Federal Deposit Insurance Corporation.
What is discretionary spending?
spending or nonessential wants
What is credit utilization?
The percentage of available revolving credit currently being used
What is compound interest?
Interest earned on both the original principal and previously earned interest.
What is a dividend?
A distribution of company earnings or assets to shareholders.
What is overdrawing an account?
Making a transaction that exceeds the available account balance.
What is zero-based budgeting?
Assigning every dollar of income a purpose so income minus planned spending and saving equals zero.
What is the difference between secured and unsecured debt?
Secured debt is backed by collateral; unsecured debt is not.
What is a common emergency savings goal?
Three to six months of essential living expenses, adjusted to individual circumstances.
What is an ETF?
An exchange traded fund is an investment fund traded on an exchange.
What is the standard FDIC insurance limit per depositor, per insured bank, per ownership category?
$250,000