Basic Vocab Unit 3
A card that takes money directly from your bank account.
A card that lets you borrow money to make purchases and pay it back later.
Debit
Credit
Marcus wants to buy a $500 guitar for his music class. He has $800 in his checking account, but he wants to keep his savings available for emergencies. His credit card has a $2,000 limit, and he knows he can pay the full $500 balance when the bill arrives. Should he use credit or debit?
Credit
A record of your credit history, including loans, credit cards, payments, and debts.
A number that shows how likely you are to repay borrowed money on time. A high number is good
Credit Report
Credit Score
Money you receive, such as from a job or work.
A plan for how you will spend and save money.
Income!
Budget Plan!
Credit Union Question 🏦
Jake wants to open an account at a financial institution that is owned by its members and usually operates as a nonprofit. He wants to save money and possibly get a loan in the future. Which should he choose?
A. Credit card company
B. Credit union
C. Insurance company
D. Investment firm
Credit Union
The amount you have to pay yourself before insurance starts paying.
Deductible/Co-pay
New Gaming system
Jay wants a new 400 dollar gaming system. He has $600 in his checking account, but using debit would leave him with only $200 for emergencies. His credit card has a low interest rate, and he knows he can pay the full balance next month due to a job he has lawnscaping.
Credit or Debit?
Credit
A goal that takes a while to achieve, usually several years. Examples include purchasing a home, buying a car, saving for college, or paying off student loans.
Long term goal
The possibility that something bad or unexpected will happen.
Protection against risks and financial loss.
Risk
Insurance
A federal health insurance program mainly for people 65 and older, as well as some younger people with certain disabilities or conditions.
Medicare
A for-profit financial institution: A business that makes money by providing financial services, such as holding deposits, making loans, and charging fees or interest.
A non profit financial institution owned by its members that provides services like savings accounts and loans.
Bank
Credit Union
Emergency Car Repair 🚗
Carlos's family car needs a $550 car repair. His parents have only $200 available in their checking account, but they need the car to get to work. They have a credit card but would need several months to pay it off.
Credit or Debit?
Credit
These are expenses that are optional or not necessary and can be changed or avoided, such as entertainment, dining out, shopping, and vacations. Your fun money.
Discretionary Expenses
Name the five things you need to consider when deciding on a job or what career cluster you enter.
Aptitudes, abilities, values, interests, and income
Emma’s car is damaged in an accident. The repair costs $2,000. Her insurance policy has a $500 deductible. How much will Emma have to pay if the damage is covered by her insurance?
A. $0
B. $500
C. $1,500
D. $2,000
B 500
A legal process for a person or business that cannot pay the money they owe. It can protect debtors from creditors by stopping or limiting collection actions
Bankruptcy
Jordan wants to buy a new cool JBL speaker. He has $200 in his checking account and wants to buy a $50 speaker. He could use his debit card immediately or use his credit card and pay the entire $50 balance when the bill arrives. However, he isn't sure when he will get another paycheck
Credit or Debit?
Debit
These are expenses that stay the same or nearly the same each month, such as rent, a car payment, or insurance.
Fixed Expenses
PYF stands for...
Hint: This is an excellent method of saving and making sure you are using your money wisely.
Pay Yourself First
A government program that provides money to eligible people, including retired workers, people with disabilities, and some family members of workers who are sick and unable to work.
Social Security
The legal process where a lender takes ownership of a home because the borrower has failed to make mortgage payments
Foreclosure
You have $250 in your checking account and want to buy a new pair of $80 nike running shoes. You already have enough money saved for your upcoming expenses, and you don't want to risk going into debt. Should you use a credit card or debit card?
Debit
This type of expense can change or vary from month to month, such as groceries, gas, entertainment, doctors visits, and clothing.
Variable Expenses
Income before deductions and taxes are taken out
Income after deductions and taxes are taken out
Gross
Net
Jordan gets a $500 paycheck. He needs to pay $200 in bills, wants to spend $150 on new clothes, and plans to save $100 for a car. Instead of spending the $150 first, Jordan puts $100 into his savings account as soon as he gets paid. What financial habit is Jordan using?
Pay Yourself First