Credit
What Is Credit?
the trust-based system where a lender provides money or resources, and you agree to repay it with interest.
What is Debt?
Money you borrow that must be paid back
What is one way to invest?
- stocks
- bonds
- savings
What is a what and give an example
A want is something that is nice to have, but not required. (example can be anything that falls within the want realm
How many pennies make up 1.00
100 pennies
This is the highest possible credit score, according to the presentation — at the top of the “excellent” range.
What is 850 credit score
What is Interest?
the extra money you pay when you borrow money or the extra money you earn when you lend or save money. It’s the cost of borrowing or the reward for saving.
What is a portfolio?
your collection of investments — stocks, bonds, savings, etc.
What is a need
A need is something that is essential for survival and well being
True or False: a large and growing number of people are living paycheck to paycheck
True: there has been an increased due to factors like inflation and rising costs
true or false: Checking your own credit score will lower it.
False
What is 2 common types of debt
any work: student loans, car loans, mortgages, credit cards, payday loans
What is diversification?
Diversification means not putting all your eggs in one basket. You invest in different areas so if one does badly, the others can make up for it.
True or false its important to balance wants and needs so we prevent overspending
True
What is the 50/30/20 rule?
you spend 50% of your income on needs, 30% on wants, and 20% on savings
This category impacts your credit score the most
Payment History
How can you manage debt wisely
✅ Only borrow what you can pay back
✅ Always pay on time
✅ Don’t borrow for “wants”
✅ Save before borrowing
✅ Ask for help if you can’t pay
What is a Mutual fund?
A mutual fund is like a basket that holds many different stocks and bonds. Instead of buying just one company, you buy a little bit of many.
true or false: you build credit before you are 18
True: you can become an authorized user under your parents
This type of credit is like a credit card — you can keep borrowing, paying back, and reusing it.
What is revolving credit?
True or False: Debt can be good
True:
Good debt is borrowing money for something that will help you improve your future — it’s like an investment in yourself or your life.
It can help you build skills, grow wealth, or increase income over time.
When is it a good time to buy a stock?
When its at its lowest point!
What is budgeting?
This financial skill involves recognizing that needs must be covered before wants, especially when income is limited.
what are our be GREAT Values?
Generous
Respectful
Encouraging
Accountable
Trustworthy