Budgeting
Budgeting is a financial plan that________
Helps you manage your income and expenses
What is a credit score?
A numerical representation of your creditworthiness
What is a loan?
Loans are lump-sum amounts borrowed and repaid with interest.
Identity Theft occurs when someone steals your personal information to commit fraud
True
You should use budgeting apps and financial software to track ________
Your Spending and Manage your Finances
Money spent on goods and services including bills, groceries, and entertainment.
Expenses
A higher credit score indicates ?
Better creditworthiness and can lead to better loan terms and interest rates
What types of things are loans used for?
To purchase things like homes or cars
Always verify if the person asking for your personal information is legitimately entitled to have your information
True
What does "CD" stand for?
Certificate of Deposit
What is the first step in creating a budget?
Calculate your total monthly income
How do you raise your credit score?
Pay your bills on time, reduce credit card balances, avoid opening new account frequently.
What are some examples of things you can use your savings for?
Emergency fund, retirement, investments, short-term goals, and long-term goals
You should use the same password for all of your accounts
False
Checking, Savings , Moneymarket and CD's are examples of what?
Types of bank accounts
What is the 50:30:20 rule?
A simple guideline for budgeting
What is a credit card ?
A credit card allows you to borrow money up to a certain limit to make purchases.
Debt is _______
Money borrowed, that must be repaid with interest
The 50/30/20 rule is when you put 50% of your money towards wants, 30% towards savings, and 20% towards needs.
False
Reconciling your accounts involves comparing your records to your______ ________ to ensure accuracy
Bank Statement
What does it mean to "pay yourself first” in budgeting?
Put money in savings before you pay your bills.
If a credit card is not managed what can happen?
It can lead to debt, high interest rates and fees
What are the causes of debt?
Overspending and lack of savings
Overspending, unplanned medical expenses and a lack of savings contribute to debt?
True
Saving ________ is crucial for financial security
Money