Budgeting Basics
A plan for managing income and expenses.
What is a budget?
A number representing your creditworthiness.
What is a credit score?
To set aside money for future use.
What does it mean to save money?
Everyday transactions and bill payments.
What is a checking account commonly used for?
You have $100 and spend $75. How much remains?
What is $25.
A need is essential; a want is optional.
What is the difference between a need and a want?
Name one way to build credit.
What is making payments on time, or using a secured credit card responsibly.
A specific amount of money you plan to save for a purpose.
What is a savings goal?
A card that typically spends money from a linked bank account.
What is a debit card?
Your electric bill is higher than expected. Name one step you can take.
What is Contact the utility provider, adjust your budget, or seek assistance.
Money saved for unexpected expenses
What is an emergency fund?
Annual Percentage Rate.
What does APR stand for?
Set aside savings before spending on nonessential purchases.
What does pay yourself first mean?
Spending or withdrawing more than the available account balance.
What is overdrafting?
You save $25 each week for four weeks. How much is saved?
What is $100.
Using most or all income before the next payday?
What does living paycheck to paycheck mean?
The percentage of available revolving credit currently used.
What is credit utilization?
Interest earned on both the original money and previously earned interest.
What is compound interest?
Eligible bank deposits up to applicable insurance limits if an insured bank fails.
What does FDIC insurance protect?
A $60 item is 25% off. What is the sale price before tax?
What is $45.
50% needs, 30% wants, and 20% savings or debt repayment
What is the 50/30/20 budgeting guideline?
A credit report contains credit history; a score summarizes credit risk.
What is the difference between a credit report and a credit score?
A program that adds funds based on qualifying participant savings.
What is a matched savings program?
What is the difference between a bank and a credit union?
What is Banks are generally investor-owned; credit unions are member-owned financial cooperatives.
Your income is $2,000 and expenses total $2,150. What is your monthly shortfall?
What is $150.