Budgeting Basics
A plan for how you will spend, save, and manage your money
What is A Budget?
This type of bank account is primarily used for everyday transactions, such as paying bills and making purchases.
What is a Checking Account?
This three digit number helps lenders determine how likely you are to repay borrowed money.
What is a credit score?
This document summarizes your work history, education, skills, and qualifications when applying for a job.
What is a resume?
This is a list of items you plan to buy before going to the grocery store to help avoid unnecessary purchases.
What is a grocery/shopping list?
This type of expense generally stays the same each month.
What is a Fixed Expense?
This is the money a bank pays you for keeping money in a savings account. This is typically higher when it is a high yield savings account.
What is interest/interest rate?
This is the extra cost you pay for borrowing money, usually expressed as a percentage of amount borrowed.
What is interest or APR (Annual Percentage Rate)?
This is a conversation between a job applicant and an employer used to determine whether the applicant is a good fit for an open position.
What is a job interview?
This is a purchase you make without planning or thinking about it beforehand.
What is an impulse purchase?
If you earn $2,400 per month and your monthly expenses total $2,050, how much money do you have left after paying your expenses?
What is $350?
This occurs when you spend or withdraw more money than you have available in your checking account.
What is an overdraft?
This is the percentage of your available credit that you are currently using.
What is credit utilization?
This document outlines your earnings, taxes, benefits, and other deductions for a specific pay period.
What is a pay stub or paycheck?
This is a coupon, promotion, or special offer that allows you to pay less than the regular price of an item.
What is a discount?
It is important to do this thing to understand where your money goes, identify unnecessary expenses, and stay within your budget.
What is Tracking your Spending?
This document shows deposits, withdrawals, purchase, fees, and other transactions made in your bank account.
What is a bank statement?
This is the minimum amount a credit card company requires you to pay each billing cycle to keep your account from becoming past due.
What is a minimum payment?
This the amount of money you earn before taxes and other deductions are taken out of your paycheck.
What is gross income?
This strategy involves waiting a set amount of time before making a nonessential purchase to decide whether you really need or want it.
What is the 24-hour rule? (Will also accept: "Sleeping on it")
This budgeting guideline suggests allocating 50% of your income to needs, 30% to wants, and 20% to savings and debt payments.
What is the 50/30/20 budgeting rule?
This type of savings account typically offers higher interest rates than a traditional savings account, helping your money grow.
What is a high-yield savings account?
This debt repayment strategy focuses on paying off the debt with the highest interest rate first while making minimum payments on the others.
What is the debt avalanche method?
This government program provides temporary financial assistance to eligible workers who lose their jobs through no fault of their own.
What is unemployment benefits?
This is a shopping strategy that involves calculating the cost of an item based on its size/weight/quantity to determine which option gives you most for your money. (Ex. $0.25/oz).
What is unit pricing?