Secure the Bag
What is a budget?
A plan for how you spend, save, and manage your money.
What is a credit score?
A number that represents your credit risk to lenders.
What is one example of a financial need?
Food, housing, or transportation.
What does it mean to save money?
Setting money aside for future use.
What is a paycheck?
Money an employer pays you for your work.
You earn $500 from your part-time job and spend $350. How much do you have left?
$150.
Does paying your credit card bill on time help or hurt your credit score?
Helps.
What is one example of a financial want?
Concert tickets, designer clothes, or eating out.
What is a stock?
A share of ownership in a company.
What is a W-2?
A tax form reporting an employee's annual wages and taxes withheld.
What is the 50/30/20 budgeting rule?
50% needs, 30% wants, and 20% savings and debt repayment.
What does APR stand for?
Annual Percentage Rate.
What is an emergency fund?
Money saved for unexpected expenses.
What is compound interest?
Earning interest on your original money and previously earned interest.
What is a deductible in insurance?
The amount you generally pay out of pocket before insurance starts covering eligible expenses.
What is the difference between a fixed expense and a variable expense?
Fixed expenses stay relatively consistent; variable expenses change.
What happens when you only make the minimum payment on your credit card?
You carry a balance longer and pay more interest.
Why is buying something with a credit card NOT the same as having free money?
You still have to repay the balance, potentially with interest.
What is the difference between a Roth IRA and a traditional IRA?
Roth contributions are generally made with after-tax money, while traditional contributions may be tax-deductible and withdrawals are generally taxed.
What is the difference between gross pay and net pay?
Gross pay is before deductions; net pay is what you take home.
You make $2,000 monthly. Your rent is $800, groceries are $250, transportation is $150, and entertainment is $300. How much money remains?
$500.
Your credit card limit is $1,000, and your balance is $800. What is your credit utilization?
80%.
You have $200 until your next paycheck in two weeks. What is the smartest approach to managing that money?
Prioritize essentials, limit unnecessary spending, and plan for both weeks.
Why is starting to invest in your 20s potentially more beneficial than waiting until your 40s?
Your investments have more time to grow through compound returns.
Why should you negotiate your salary when accepting a job offer?
It can increase your earnings and potentially your future raises and retirement contributions.