Vocabulary
_________ is taking money out of your account, and _________ is putting money into your account.
What is withdrawal and deposit?
The negative balance that occurs when withdrawals exceed the available balance in a checking account.
What is an overdraft?
Name one of the four actions taken for a recipe for GREAT credit.
1. ALWAYS pay your bills on time.
2. Borrow as little as possible.
3. Keep your oldest card open forever (if no annual fee).
4. Don’t apply for new credit too often.
True or False: The two parts of a budget are Income and Outcomes.
False. Income and expenses.
Give an example of a variable expense.
Clothing, food, medical care, pet care, transportation, etc.
This tracks how much income a person receives and details how that money will be allocated to pay for expenses, build savings, and meet financial goals.
What is a budget?
The reason it’s redundant to say, “I forgot my PIN number.”
PIN = Personal Identification Number
APR stands for ______ ______ ______.
What is Annual Percentage Rate?
Each month, Sarah spends $400 for rent, $200 for food, and $100 for travel. She also earns $150 a month as a law clerk. Her monthly expenses total $______.
What is $700?
A quarter, 2 nickels, 5 dimes & 6 pennies
What is $0.91?
The term used to describe things you spend money on
What are expenses?
The purpose of money in a checking account.
What is money available to be spent on everyday expenses?
Savvy credit users will refrain from using more than this percentage of their available credit limit.
What is 30%?
Ideally, your savings account will have enough money to cover expenses for this length of time.
What is three to six months?
The average American spends most of their paycheck on these three things.
What are housing, transportation, and food?
This may include your paycheck, child support, alimony, investment income, and/or other revenue
What are sources of income?
Name two of the factors people consider when choosing which bank to use.
What is: location, convenience, online accessibility, customer support, international support, interest rates, and fees?
When you owe money to more than one creditor, the best plan is to begin paying extra money each month to these two types of creditors.
What is Creditors with the highest interest rate;
What is the smallest amount owed?
When subracting expenses from income, always use your ______ income.
What is net (after taxes)?
Contributions to a traditional 401(k) plan are deducted from your salary _______ taxes.
What is before?
This type of expense remains the same month to month (e.g. rent).
What are fixed expenses?
What are the account number and the routing number?
A home mortgage and an auto loan are examples of this type of credit.
What is secured?
Needs should account for _% or less of your budget.
What is 50%?
Describe the difference between debit cards and credit cards.
Debit cards use your money and credit cards use borrowed money.