Budget Basics
What is the 50/30/20 rule in budgeting?
50% on needs, 30% on wants, and 20% on savings
This three-digit number represents your creditworthiness.
Credit Score
This type of investment represents ownership in a company.
Stock
The money you put into a savings account earns what?
Interest
What is the name of the form you use to file your federal income taxes?
1040 Form
The process of planning how to spend your income is known as what?
Budgeting
The interest charged on unpaid credit card balances is called what?
APR (Annual Percentage Rate)
What does ROI stand for?
Return on investment
What type of bank account is typically used for everyday expenses?
Checking Account
The amount of income tax you owe is determined by what?
Taxable Income
This type of expense is necessary and typically does not change month to month, like rent or a mortgage.
Fixed expense
Name the two main types of loans based on collateral.
secured loans and unsecured loans
A diversified portfolio typically contains different types of what?
Assets (like stocks, bonds, and real estate)?
What is the difference between a savings account and a Certificate of Deposit (CD)?
What is a CD typically has a fixed term and higher interest rate, while a savings account has more liquidity?
What is the term for a reduction in taxable income?
Tax deduction
Name one tool or app commonly used to track personal budgets.
YNAB (You Need a Budget), Ramsey Solutions, Faithfi or any other popular budgeting app?
FICO and VantageScore are examples of what?
credit scoring models
What is the name of the market where stocks are bought and sold?
stock market
What is the term for the amount of money left in your bank account after all transactions have been accounted for?
account balance
What is the difference between a tax deduction and a tax credit?
A tax deduction reduces taxable income, while a tax credit reduces the amount of tax owed?
If your income is $3,000 and your expenses are $2,500, what is your budget surplus?
$500
What is the term for the amount of money you can borrow on a credit card, but haven’t used yet?
Available Credit
The risk of losing money in an investment is called what?
investment risk
What is the FDIC, and what does it do?
Federal Deposit Insurance Corporation, and it insures deposits in banks
What form do employers give employees at the end of the year that shows how much they earned and how much tax was withheld?
W-2 Form