Definitions
Something specific you are saving for.
Financial Goal
A financial institution that offers services such as savings, loans, and checking accounts.
A Bank
This document, often created monthly, helps individuals or businesses track planned versus actual spending
Budget
A three-digit number that represents your creditworthiness and affects your ability to borrow money.
Credit Score
Goal that are achieved within a year are considered this
Short-term
A cost that changes each month, like food or a gas & electric payment.
Variable Expense
This is a type of account where you can deposit money, write checks, and access funds with a debit card.
Checking Account
This type of expense stays the same each month, like rent or a car payment.
Fixed Expense
This fee is charged when you don’t pay at least the minimum payment on your credit card by the due date.
Late Fee
Using more than 30% of your available credit limit can negatively affect this factor in your credit score.
Utilization
Non-essential expenses, such as dining out or entertainment, that can cause overspending if not managed.
Wants
This type of banking allows you to manage your accounts, pay bills, and transfer money using the internet.
Online Banking
The difference between income and expenses, indicating that you have extra money.
A Surplus
This is the maximum amount of credit you can borrow on a credit card or line of credit.
Credit Limit
This type of credit, allows you can borrow up to a set limit repeatedly.
Revolving Credit
Savings set aside to cover unexpected expenses, typically 3-6 months of living costs.
Emergency Fund
This term refers to the fee a bank may charge for spending money you don't have in your account.
Overdraft Fee
In a budget, this is the total money you earn from all sources before any deductions.
Gross Income
This type of credit card requires you to deposit money upfront, which acts as collateral for the credit limit.
Secured Credit Card
The use of apps, spreadsheets, or even pen and paper to track how much you’ve saved towards your goal.
Goal Tracking
A detailed report of your credit history, including loans, credit cards, and payment behavior, used by lenders to assess creditworthiness.
Credit Report
This is a fixed-interest deposit held at a bank for a specified term, usually offering higher interest rates than savings accounts.
A CD account
The minimum percentage of your pay you set aside for yourself as savings.
10%
This type of loan has a set repayment schedule and fixed monthly payments, like a car loan or mortgage.
Installment Credit
The three major credit reporting agencies that track your credit history.
What are Equifax, Experian, and TransUnion?