Credit & Debt
When is using a credit card a good idea?
When you need something now but won't have the money until the next time you get paid.
What is a want?
Something you'd like to have but will be okay without.
What is a need?
Something you truly can't live without.
What is a job?
Work you do for money.
When your credit history is good, ____.
other people are more likely to lend you money
What is an opportunity cost?
The cost you pay when you give up something to get something else.
Keeping track of what you earn, spend, and save are the key parts of a ___.
budget
What is an entrepreneur?
A person who starts his or her own business.
Why is a credit card a type of debt?
Using a credit card is borrowing money that needs to be paid back.
What is income?
Money earned from working and other means.
Tracking your spending can help you ____.
Know what money your spending and make better desicions.
What are savings?
Money set aside for short or long-term goals.
What is credit?
A loan that a person uses to pay for things but is expected to pay back.
What is interest?
the extra fee charged for borrowing money, or the cost of borrowing money
What is a salary?
payment for work, expressed as a yearly sum and paid in portions every week, two weeks, or month including sick time and vacation time
What is a savings account?
an account that gains interest and allows withdrawals
What is a long-term goal?
a goal that can be achieved in a longer amount of time. It can be months, years, or even an entire lifetime.
What is a budget?
a spending plan people make in order to make sure there is enough income to cover all expenses
What is a short-term goal?
a goal that can be achieved in a short amount of time. It can be a few days, weeks, or months.
What are taxes?
fees placed on income, purchases, or property to support government programs.