BUDGETING
This is a plan that shows how you will spend and save your money.
What is a budget?
This account is commonly used for everyday spending and paying bills.
What is a checking account?
Borrowing money with the promise to pay it back later.
What is credit/loan?
Money set aside for future needs or emergencies.
What are savings?
Comparing prices before buying something to get the best deal.
What is comparison shopping?
This type of expense usually stays the same each month, like rent or a car payment.
What is a fixed expense?
This account earns interest and is designed for saving money over time.
What is a savings account?
This three-digit number represents how trustworthy you are with borrowing money
What is a credit score?
Experts recommend having this many months of expenses saved for emergencies.
What is 3–6 months of expenses?
Buying something without planning because you suddenly want it.
What is impulse buying?
This type of expense can change each month, like groceries or entertainment.
What is a variable expense?
This card allows you to spend money that you already have in your bank account.
What is a debit card?
The cost of borrowing money, usually expressed as a percentage.
What is interest?
Earning interest on both your original money and previously earned interest.
What is compound interest?
A percentage taken off the original price of an item.
What is a discount?
The popular budgeting rule that suggests 50% needs, 30% wants, and 20% savings.
What is the 50/30/20 rule?
The machine that allows you to withdraw money from your account without going inside a bank.
What is an ATM (Automated Teller Machine)?
This report shows your credit history and borrowing behavior.
What is a credit report?
This retirement account is commonly offered through employers in the U.S.
What is a 401(k)?
The total cost of a product after taxes and fees are added.
What is the final price (or total cost)?
The money left after taxes and deductions from your paycheck.
What is net income (take-home pay)?
The fee banks charge when you spend more money than you have in your account.
What is an overdraft fee?
Using a large percentage of your available credit can negatively affect this.
What is your credit score?
Spreading your investments across different assets to reduce risk.
What is diversification?
Spending money on needs before wants is an example of this financial habit.
What is prioritizing spending?