Budget Boss Moves
What is the 50/30/20 rule?
A budgeting method that allocates 50% needs, 30% wants, 20% savings/debt.
What is a good credit score range?
Typically 670 to 850.
What is compound interest?
Interest earned on both the initial principal and accumulated interest
Name one popular side hustle for students.
Tutoring, freelancing, rideshare driving
What is net worth?
Assets minus liabilities.
How can you reduce impulse spending?
By tracking expenses and setting spending limits.
What are the 3 main credit bureaus?
Equifax, Experian, TransUnion.
Name a type of investment account for retirement
401(k), IRA, Roth IRA.
What is passive income?
Money earned with little ongoing effort (e.g., investments, rental income).
Why should you start investing early?
To take advantage of compound growth.
Name one tool you can use to track your budget.
Mint, YNAB, or a simple spreadsheet.
How can you build credit as a student?
Use a secured credit card, become an authorized user.
What is a mutual fund?
An investment vehicle made up of a pool of funds from many investors.
Why should you track your side hustle income?
For tax purposes and budget planning.
What is financial independence?
When you have enough money to cover your lifestyle without working.
Why is it important to have an emergency fund?
To cover unexpected expenses without going into debt.
What factor has the biggest impact on your credit score?
Payment history.
What does ETF stand for?
Exchange-Traded Fund.
What is a gig economy?
A labor market with short-term, flexible jobs.
Name one step to start building wealth today.
Create a budget, save regularly, invest wisely.
What is discretionary income?
Money left over after necessities and taxes are paid.
What is a credit utilization ratio?
The percentage of credit you're using vs your limit.
What is diversification in investing?
Spreading investments across various assets to reduce risk.
How can your passion become a source of income?
By monetizing hobbies or starting a small business.
What is the 'Rule of 72' in finance?
A way to estimate how long it takes for money to double at a given interest rate.