Money Basics
This is the money you earn from your job.
What is an income?
Money you keep for rainy day instead of spending.
What is savings?
A large loan used to buy a home.
What is a mortgage?
The money you use to buy things.
What is cash?
A plan that helps you decide how much to spend and save.
What is a budget?
A card that allows you to borrow money to make purchases and pay it back later.
What is a credit card?
A place of business where you keep your money.
What is a bank?
Money saved for unexpected expenses, like a car repair.
What is an emergency fund?
The extra money you pay or one that is added when borrowing money, often as a percentage of the loan.
What is a interest?
A card that allows you to buy things and the money comes directly from your bank account.
What is a debit card?
If you want to buy something expensive and unnecessary, it is smart to do this.
What is save?
This method allows you to avoid too much debt and added interest.
What is payback?
The number/score that helps banks decide if they should lend you money and also a reflection on how good you are at paying back borrowed money.
What is a credit score?
An expense that stays the same every month. Doesn't change.
What is a fixed expense?
If you spend more than what you earn or have, you can land into this.
What is debt?