Personal Finance
Money kept aside for unexpected expenses is called this.
What is an emergency fund?
Money borrowed that must be paid back with interest.
What is a loan?
The cost of borrowing money, expressed as a percentage.
What is an interest rate?
This plan helps you track your income and expenses so you can manage your money wisely
What is a Budget?
This protects you financially if something unexpected happens, like an accident.
What is insurance?
A score that shows how reliable you are when it comes to paying back debt.
What is a credit score?
The original amount borrowed before interest is added.
What is the principal?
Interest calculated only on the principal.
What is simple interest?
Expenses that stay the same each month, like rent, are called this.
What are fixed expenses?
Insurance that helps pay for medical expenses.
What is health insurance?
This document shows your income and expenses over a period of time.
What is a bank statement?
This type of loan usually has higher interest rates and is based on your paycheck.
What is a payday loan?
If you borrow $100 at 10% simple interest for 2 years, how much interest do you owe?
What is $20?
If you earn $2,000 EC monthly and spend $1,800 EC, what is your surplus?
What is $200.00 EC?
This is the amount you pay each month to keep your insurance active.
What is a premium?
This term represents the increase in the value of an asset over time, often used when talking about stocks, property, or other investments.
What is appreciation?
This type of loan does not require collateral, meaning the lender relies only on your creditworthiness and promise to repay.
What is an unsecured or personal loan?
This type of interest rate can change over time depending on the market.
What is a variable/adjustable/floating interest rate
This term describes checking your spending against your budgt to make adjustments.
What is budget tracking/or monitoring?
The amount you must pay out-of-pocket before insurance kicks in.
What is a deductible?
This term descibes the difference (-) between assets and liabilities.
What is Equity or Net Worth?
A loan where the interest rate can change over time.
What is a variable-rate loan?
The type of interest rate that has been adjusted to remove the effects of inflation.
What is the real interest rate?
This budgeting method involves dividing money into categories labeled "needs," "wants," and "savings."
What is the 50/30/20 rule?
Insurance that replaces part of your income if you cannot work due to illness or injury.
What is disability insurance?