Budgeting
This is the term for a plan that tracks income and expenses to manage money effectively.
What is a budget?
This is the percentage of income that individuals or companies pay to the government to fund public services
What is income tax?
This three-digit number represents your creditworthiness.
What is a credit score?
This type of account is used for everyday transactions and bill payments.
What is a checking account?
The difference between your total assets and total liabilities.
What is net worth?
The portion of your income left after paying taxes and other mandatory deductions.
What is disposable income?
This is the type of tax you pay on products/goods and services, sometimes added onto the original pricing
What is sales tax?
This type of interest rate stays the same throughout the life of a loan or credit agreement.
What is a fixed interest rate?
This type of account is designed to help individuals save for retirement.
What is a 401(k)?
This document shows an employee's earnings, deductions, and taxes withheld for a specific pay period.
What is a pay stub?
The financial rule that suggests allocating 50% of income to needs, 30% to wants, and 20% to savings or debt repayment.
What is the 50/30/20 rule?
This term describes being legally responsible for paying a debt or financial obligation.
What is Liable?
The maximum amount you can borrow on a credit card.
What is a credit limit?
This is the rise in prices over time, which reduces the value of your savings.
What is inflation?
This term refers to an expected future outcome based on current conditions, like ___ earnings from a business.
What is Prospective?
This type of expense remains the same each month, such as rent or a car payment.
What is a fixed expense?
When someone avoids paying taxes through legal exemptions, deductions, or credits are said to ___ a portion of their taxable income?
What is Forego?
This is the fee charged by a credit card company when you don't pay your balance in full by the due date.
What is a late fee?
When saving for a specific goal you must, ___ your funds in a way that best meets your financial goals?
What is to Allocate?
This term refers to the amount by which expenses exceed income.
What is a deficit?
This term refers to income left after paying for necessities and fixed expenses.
What is discretionary income?
If you are subject to a financial penalty, you may ___ costs of paying above your usual obligation.
What is to Incur?
A financial tool used to compare the cost of borrowing money across different loans or credit products.
What is the annual percentage rate (APR)?
This term refers to the difference in wealth/income or access to financial resources between different groups of people such as high and low-income households
What is Disparity?
This ratio compares your total monthly debt payments to your gross monthly income.
What is the debt-to-income ratio?