Money Basics
What is interest?
A extra amount of money that is added to the money you borrow.
What is a need?
Something you must absolutely have in order to live
what is investing?
Placing your money into a company with the goal of making a profit over time.
What is debt?
When you borrow money and have to pay it back, it’s called this.
what is an expense?
This is money you spend.
What is money?
A title for the coins and bills we use to buy things
What is saving?
Saving is money that you put aside and don't spend right away.
What is investing?
buying part of a company through the stock market
what is a credit card?
This type of card lets you borrow money and pay it back later.
what is gross income?
This is the total money you earn before any taxes are taken out.
What is income?
When you work a job, the money you earn is called an income.
What is a want?
something you don't need to survive but want just for enjoyment
What is a retirement account?
A type of bank account used to save money for retirement by investing it
what is a late fee?
If you don’t pay your credit card bill on time, you may be charged this.
What is financial planning?
the process of planning how to spend and save your money over time.
What is a debit card?
What is budgeting?
a smart way to keep track of your money by writing down how much you earn and how much you spend.
What is a loss?
when your investment loses value
What is a credit limit?
a maximum amount of money you can borrow on a credit card
what is a surplus?
when you have more income than expenses
What is inflation?
Describes how the value of money decreases over time; things cost more in the future than they do today
define the 50/30/20 rule
50% of your paycheck goes towards needs, 30% towards wants, and 20% for savings
What is an asset?
something you own that can grow in value such as a stock or a house
What is outstanding debt?
the total amount of money you owe on all credit cards and loans
What is net income?
This is the money left after taxes — your take-home pay.