Budgeting & Saving
This is a detailed plan for how to spend or save your money.
What is a budget?
A three-digit number representing your creditworthiness, primarily influenced by your payment history.
What is a credit score?
Considered a conservative and safe investment, this term refers to stock in a large, well-established company.
What is a blue chip stock
Another name for a check card, this type of card deducts money directly from a connected bank account.
What is a debit card?
After age 59½, you can begin to make withdrawals from this common retirement account without a 10% penalty.
What is a 401(k) or IRA?
The practice of paying yourself first means putting money into this type of account before paying other bills.
What is a savings account?
This is the amount you pay out-of-pocket when you have an insurance claim, such as for a car accident.
What is a deductible?
This financial product is a collection of stocks, bonds, or other securities managed by a professional, and is a popular investment for retirement accounts.
What is a mutual fund?
The federal agency that insures deposits in U.S. banks up to a certain amount.
What is the Federal Deposit Insurance Corporation (FDIC)?
Your earnings before any deductions, such as taxes and insurance, are subtracted
What is gross pay?
The 50/30/20 rule of budgeting suggests putting 20% of your income towards this purpose.
What is saving and debt repayment?
This financial product allows you to borrow money, promising to repay the amount plus a fee, which is a key component of your FICO score.
What is a credit card?
Also known as the OTC market, this is a network of dealers who buy and sell stocks not listed on a formal securities exchange.
What is the "over the counter" market?
The term for putting money into a savings account
What is making a deposit?
These government-backed bonds are considered one of the safest investments because they are guaranteed by the full faith and credit of the U.S. government.
What are Treasury bonds?
This is a cash reserve set aside to cover unexpected expenses, like a car repair or a medical emergency.
What is an emergency fund?
This type of loan is backed by collateral, such as a car or a house, which can be repossessed if you fail to make payments.
What is a secured loan?
An investment that pays higher than average dividends compared to other stock issues.
What is an "income stock"?
This is the financial institution that is owned by its members and operates on a non-profit basis.
What is a credit union?
This federal form determines how much income tax is withheld from your paycheck.
What is a W-4 form?
Saving a fixed, consistent amount of money on a regular schedule is known by this three-word term.
What is an automated savings plan?
This debt repayment strategy involves paying off your smallest debt first to gain momentum.
What is the debt snowball method?
This stock trading request tells a broker to buy or sell a stock at the best price currently available on the market.
What is a "market order"?
Unlike regular paper, U.S. paper currency is made from a blend of these two fibers
What are cotton and linen?
This financial literacy concept refers to the increase in the price of goods and services over time, which reduces the purchasing power of your money.
What is inflation?