💰 Money Masters
What is a budget?
A plan for how you will earn, spend, and save money.
Which is usually better to reduce in a budget: needs or wants?
Wants
You want to save $300 in 3 months. How much should you save each month?
$100
What is credit?
Money you borrow now and repay later.
What is a checking account used for?
Making deposits, paying bills, and withdrawals. (Everyday Spending)
What is income?
Money you earn or receive
Groceries, housing, and transportation are examples of what type of expenses? (Wants or Needs)
Needs.
What is the reward for keeping money in a savings account called?
Interest
What is the extra amount you may pay when you carry a credit card balance from month to month?
Interest.
What is a savings account used for?
Setting aside money for the future
What is gross pay?
The total amount earned before taxes and deductions.
When making a budget, which should be planned for first: needs or wants?
Needs.
If you save $10 every week for a year, approximately how much money will you have saved?
$520
What type of credit lets you borrow, repay, and borrow again up to a limit? (Revolving Credit or Installment Credit)
Revolving credit.
What is the term for money added to a bank account?
Deposit
What is net pay?
The amount left after taxes and deductions
What is the difference between a need and a want?
A need is necessary for living; a want is something you'd like but can live without.
What is an emergency fund used for?
Unexpected expenses.
What is the highest possible credit score?
850
What banking term describes spending more money than is currently available in your account?
What type of expense is usually the same amount each month?
A fixed expense.
Why is it important to know the difference between a need and a want?
It helps you make better spending decisions and reach your financial goals.
What is the difference between an emergency fund and a savings goal?
An emergency fund is for unexpected expenses, while a savings goal is for a planned future purchase.
Which factor makes up the largest share of a credit score?
Payment History/ Paying On Time
How much does FDIC insurance protect per depositor, per bank?
Up to $250,000 per depositor, per bank.