Banking Basics
This is the safest place to keep your money instead of under your mattress
What is a checking or savings account?
This is a plan for how you'll spend and save your money.
What is a budget?
Experts recommend saving this many months of expenses for emergencies.
What is 3–6 months?
Borrowing money and agreeing to pay it back is called this.
What is credit?
Comparing prices before buying something helps you do this
What is save money?
This financial institution is owned by its members instead of shareholders
What is a credit union?
Money you receive from a job is called this.
What is income?
This is money set aside for unexpected expenses.
What is an emergency fund?
Paying your bills on time helps improve this three-digit number.
What is a credit score?
Buying something because it's on sale, even if you don't need it, is often this type of purchase.
What is an impulse purchase?
This card spends money you already have in your account.
What is a debit card
Rent and car payments are examples of these recurring expenses.
What are fixed expenses
This helps your savings grow by earning money on your money.
What is interest?
This is the cost of borrowing money
What is interest
This simple habit can help reduce impulse spending by giving yourself time before buying.
What is the 24-hour rule
This number keeps your debit card and online banking secure
What is a PIN (Personal Identification Number)?
Eating out and entertainment are examples of these expenses
What are variable expenses?
Starting to save early gives your money more time to benefit from this
What is compound interest?
Using only a small percentage of your available credit helps this ratio.
What is credit utilization
This means paying yourself before spending on wants.
What is paying yourself first?
This protects eligible deposits up to federal limits at insured credit unions
What is share insurance (NCUA insurance)?
A common budgeting guideline suggests spending 50% on needs, 30% on wants, and this percentage on savings and debt.
What is 20%?
Saving automatically from each paycheck is called this type of saving.
What is automatic savings (or direct deposit into savings)
This document shows your borrowing history.
What is a credit report?
The total amount you pay after taxes, fees, and interest is called this.
What is the total cost?