Budgeting Basics
This is a plan that tracks your income and expenses.
What is a budget?
This type of fund is designed to cover unexpected expenses.
What is an emergency fund?
A caller asking you to “confirm” this type of information is often trying to steal your identity.
What is personal information?
This card uses money directly from your bank account.
What is a debit card?
Money you earn from working or other sources.
What is income?
This category includes rent, utilities, and insurance that stay mostly the same each month.
What are fixed expenses?
Financial advisors recommend having this many months of expenses saved.
What is 3 to 6 months?
This type of fraud involves someone stealing your personal information to open accounts.
What is identity theft?
Paying off this full amount each month helps you avoid interest charges.
What is the credit card balance?
This economic term describes the general rise in prices over time.
What is inflation?
These expenses change from month to month, like groceries and gas.
What are variable expenses?
This type of account earns interest and is good for storing emergency funds.
What is a savings account?
You should never share this information over the phone with unknown callers.
What are your Social Security number or bank details?
To maintain a good credit score, it's recommended to keep this ratio under 30%.
What is the credit utilization?
This is the cost of borrowing money.
What is interest?
This is the amount of money you take home after taxes and deductions.
What is net income?
Putting money aside instead of spending it right away is called this.
What is savings?
DAILY DOUBLE
A type of scam email that tries to trick you into clicking a link and entering personal information.
Loans that require collateral are called this, unlike unsecured loans.
What are secured loans?
This term describes how easily an asset can be converted to cash.
What is liquidity?
If you earn $3,000 a month and spend $2,400, this is how much you save.
What is $600?
This financial habit helps your savings grow over time by earning interest on both your money and the interest already earned.
What is compound interest?
A type of fraud where someone builds a relationship online before asking for money.
What is a romance scam?
This happens when you spend more money than is in your checking account using a debit card.
What is an overdraft?
This is money taken out of your paycheck before you receive it, like taxes or insurance.
What are deductions?