Lesson 1
an expression used to describe a person or household whose monthly income is devoted to expenses and has little to no savings
Paycheck to Paycheck
the granting of a loan and the creation of debt; any form of deferred payment
Credit
the amount by which the value of a person’s assets exceeds or falls behind the value of their liabilities
Net Worth
what is the First of the The Five Foundations
Save a $500 emergency fund
How dose being a "saver" impact financial discussion in a marriage
cautions approach to spending
all the financial decisions an individual or family must make in order to earn, budget, save, spend, and give money over time
Personal Finance
the percentage of principal charged by the lender for use of its money
Interest Rate
anything that is owned by an individual, including money in the bank or investments
Asset
what is the Second of the The Five Foundations
Get out and stay out of debt
what challenges for a "spender" when it comes to managing money as a adult
impulse purchases, overspending
money owed to another person or company
Debt
person or entity that charges borrowers interest rates above an established legal rate
Loan Shark
a plan of action that allows a person to meet not only their immediate needs but also their long-term goals
Financial Plan
what is the Third of the The Five Foundations
Pay cash for your car
why is it important for couples to discuss their money personalities
mutual understanding and empathy
a person or organization that uses a product or service
Consumer
the additional cost a lender charges for borrowing their money
Interest
the dollar value of a person’s assets is greater than the dollar value of their liabilities
Positive Net Worth
what is the Fourth of the The Five Foundations
pay cash for college
how can a couple with different money personalities create a shared budget
identify their shared financial goals, track their individual spending
what a person earns after payroll taxes and other deductions are taken out; often referred to as take-home pay
Net Income
what is the Fifth of the The Five Foundations
Build wealth and give
what dose it mean to "handle money' in the context of being single
taking full responsibility for earning and spending