Investing
This type of investment allows you to own a share of a company and potentially earn dividends.
What are Stocks?
Payment history, credit utilization, and length of credit history are key factors in calculating this number.
What is a Credit Score?
This is the process of creating a plan to manage income and expenses each month.
What is budgeting?
Investing through this app allows users to start with as little as $5 by rounding up everyday purchases.
What is Acorns?
Keeping this percentage of available credit low helps maintain a good credit score.
What is Credit Utilization?
Fixed expenses include costs that don’t change every month, like rent or this payment for school.
What is Tuition?
Diversified investment products like these pool together various stocks or bonds, offering a low-cost way to invest in many assets.
What are Mutual Funds or ETFs
Opening one of these types of cards is a good way for college students to start building credit.
What is a Student Credit Card?
A fund that can cover 3–6 months of expenses in case of emergencies.
What is an Emergency Fund?
Known as the “8th wonder of the world,” this concept refers to earnings generated from reinvested interest or dividends.
What is Compound Interest?
This term describes how many new credit accounts you apply for, and too many applications can lower your score.
What is New Credit?
This type of expense can vary each month, like groceries, entertainment, or transportation.
What are Variable Expenses?
This type of account allows people to save for retirement and grow their money tax-free or tax-deferred.
What is an IRA (Individual Retirement Account)?
These loans you give to companies or governments are generally safer than stocks.
What are Bonds?
This budgeting rule suggests spending 50% of income on needs, 30% on wants, and 20% on savings and debt.
What is the 50/30/20 rule?