Budgeting Basics
This is a plan that tracks income and expenses
What is a budget?
Money you earn from working
What is a active income
Money set aside for unexpected costs
The study of how people use resources
What is economics?
A gas station has $3.24 per gallon. You need 30 gallons, how much will it cost?
$97.20
A place where people store money safely
What is bank?
surcharges that banks or card issuers add for transactions processed in a foreign currency
What are foreign transaction fees?
The chance that an investment loses value
What is risk?
When prices rise over time
What is inflation?
$4290
Money the bank pays you for saving
What is interest?
Borrowed money that must be repaid
What is a loan?
Spreading money across different investments
What is diversification?
When demand is higher than supply
What is scarcity?
you make 3,000 a month. Your electricity bill is $163.5, you gas bill is $203, how much do you have left?
$2633.5
The part of income that goes to savings
What is savings rate?
A card that lets you borrow money
What is a credit card?
Money earned from investments
What is a return?
A period when the economy shrinks
What is a recession?
You make $2,950 before taxes, your total bills cost $1,200. How much do you have left after a tax rate of 18.43%
$1,206.315
A long-term financial goal
What is retirement (or college fund)?
A number that shows how reliable a borrower is
What is a credit score?
Investment with the highest risk
What are cryptocurrencies or speculative stocks?
Government money collected from citizens
What are taxes?
You made $1,260 per month before taxes. Your annual tax rate is 3.30%, how much do you make in a year after taxes?
$14,621.00