That's So (Budgeting) Basic
What is it called when you create a plan for how you spend and save your money?
A budget
What is the term for the amount of money you pay up front to lower your loan amount?
Down Payment
Banks and credit unions are both examples of what?
Financial Institutions
The nine-digit number used to identify your banking institution
This type of loan helps with college tuition and expenses
Student loan
A car payment is an example of what kind of expense?
A fixed expense
The extra percentage a lender charges you for borrowing money to buy a vehicle
Interest
Which type of banking account utilizes a debit card and can be opened by both banks and credit unions?
Checking Accounts
Spending more than your available balance, causing fees
Overdraft
Which type of debt allows you to borrow money repeatedly up to a certain amount and often comes with rewards or annual fees?
Credit Card
In the 50/ 30/ 20 budgeting rule, what percent of your income should go to savings?
20%
The length of time you have to repay your car loan
Loan Term
Who are the owners of a credit union?
Members
Interest earned on both the principal balance and the previously earned interest
What will you pay more of over time if you only pay a minimum balance on your credit card?
Interest
If a student earns $1,000 per month and follows the 20% saving rule, how much should they save each month?
$200
This financial number helps the lender decide the interest rate you qualify for when financing a car.
Credit Score
Who are generally the owners of a bank?
Shareholders
The assets pledged to secure a loan (house, car, etc.)
Collateral
Personal loans, lines of credit, and credit cards are all considered this type of loan
Unsecured
Most financial experts recommend saving 3 to 6 months of your basic living expenses in order to account for what?
This is a long-term rental contract, where you make monthly payments to drive a new vehicle without owning it.
Lease
The FDIC
The legal process where unclaimed or abandoned property (like an inactive bank account) reverts to state ownership.
Escheatment
This type of loan is very short term with very high fees & interest and only should be utilized in an emergency situation
Payday loan