Budgeting Basics
Name one benefit of creating a monthly budget.
Helps track spending, avoid debt, or save for goals
What is a “minimum payment” on a credit card?
The smallest amount you must pay on your bill to avoid penalties.
What is the safest place to store your savings?
A bank or credit union.
What does the acronym IRS stand for?
Internal Revenue Service
What does "BOGO" stand for in sales?
Buy One, Get One
What is the term for money you earn or receive in a month?
Income
Name one way to improve your credit score.
Pay bills on time, reduce debt, or keep old accounts open.
$500: What is a 401(k)?
A retirement savings plan offered by employers.
What’s the term for the form your employer gives you to show how much you earned and taxes paid?
W-2 Form
What is the “opportunity cost” of spending money on an item?
The value of what you give up by spending money elsewhere.
What is the term for money left over after all expenses are paid?
Disposable Income
What does a credit score represent?
Your creditworthiness or ability to repay debts.
What is the term for money earned on your savings account over time?
Interest
What’s the difference between gross income and net income?
Gross is before taxes and deductions; net is after.
What’s the term for a product or service that looks good in an ad but may not actually save money or add value?
A Marketing Gimmick
What is a "fixed expense"? Give an example.
An expense that doesn’t change monthly, like rent or a car payment.
What’s the term for the extra money you pay when borrowing, expressed as a percentage of the loan amount?
Interest
What’s the difference between a stock and a bond?
A stock is ownership in a company; a bond is a loan to a company or government.
What is the purpose of a tax refund?
To return overpaid taxes to the taxpayer
What is the term for a regular cost, like a subscription or membership, that can add up over time if not tracked?
A Recurring Expense
What percentage of your income do financial experts recommend you save each month?
20% (based on the 50/30/20 rule)
What is the maximum credit score someone can typically have?
850
What does “diversification” mean in investing?
Spreading out investments to reduce risk.
Name one example of a tax deduction.
Student loan interest, charitable donations, or mortgage interest.
What’s the term for buying something without planning for it, often due to emotions or sales tactics?
Impulse Buying