Credit
What does a credit bureau do?
They collect and store information about how well people manage their borrowed money
What is a loan?
Money borrowed from a bank or lender that you agree to pay back your with int over time.
If you were to borrow a friends PlayStation and you give them your hoverboard until you return their stuff what is this called?
Secured credit
What is a budget?
A plan that outlines expected income and expenses over a specific period.
What is a personal budget?
A plan for how you will spend and save your money each month or year.
What is a credit limit?
The maximum amount of money you can borrow on your credit card
Give an example of debt consolidation.
Combining multiple debts in one
If you were too take a loan from the bank and never pay them back what is this called ?
Default
What is a household budget used for?
Used for managing the money that comes into and goes out of your home, helping you cover all your family’s expenses.
What is expense?
Money spent on goods, services, or bills, representing the cost of maintaining and operating a business or personal life.
What is like a report card that keeps track of how well you manage your borrowed money?
Credit Report
If you want to open a new credit card but the bank has to look at your previous credit cards and check your credit score what is this called?
Hard inquiry
If you were to borrow $100 from your mom and she tells you give her $10 everyday for 10 days what is this called?
Minimum Payment
What is a business budget used for?
Used to predict income, costs, and profits to ensure they have enough money to operate.
What is consolidation mean?
Combining multiple things into a single, more effective, or manageable unit
What protects your credit report from being seen by anyone else?
Credit freeze
What is Interest Rate?
Extra money you pay for borrowing money
Give an example of unsecured credit?
If your friend lets you borrow their bike without keeping something of yours. No collateral is needed for this loan.
What is a capital budget used to plan for?
Big purchases or investments a business plans to make, like buying new equipment or buildings.
What is a method where you start from scratch each period and justify every expense, making sure every dollar is spent wisely?
Zero-based budgeting
What is revolving credit?
You can borrow, repay, and borrow again up to a limit
What is (APR) Annual Percentage Rate?
The yearly interest rate charged on borrowed money
If you were to borrow $1,200 from the bank and pay it back by giving them $100 each month for a year what is this called?
Installment Loan
What is a operating budget?
A detailed plan of how much money a business expects to make and spend over a certain time, usually a year.
What is revenue ?
Total income generated from sale of goods or services before any expenses are deducted.