Budgeting Basics
What is the purpose of a budget?
To plan and control income and expenses
What is a credit score?
A number that represents creditworthiness based on payment history and credit usage
What is an emergency fund?
Money set aside for unexpected expenses like medical bills or car repairs
What is the difference between gross pay and net pay?
Gross pay is before deductions; net pay is after deductions
How many more days until summer?
73
Name one fixed expense and one variable expense
Fixed: Rent
Variable: groceries
Name one way to improve your credit score
Pay bills on time, reduce debt, keep credit utilization low
What does "pay yourself first" mean?
Automatically saving a portion of income before spending on anything else
What does FICA stand for, and what does it fund?
Federal Insurance Contributions Act; it funds Social Security & Medicare
How many siblings does Estella have?
4
If you make $2,000/ month, how much should you "save"
Around 10-20%
What happens if you only make the minimum payment on a credit card
You pay more interest over time and it takes longer to pay off debt
What is the difference between a savings account and a checking account?
Savings accounts earn interest and are for saving, while checking accounts are for everyday transactions
What is phishing?
A scam where fraudsters try to steal personal information via fake emails or messages
What was my favorite subject in school?
Health, History, or Science
What is the 50/30/20 rule in budgeting?
50% needs, 30% wants, 20% savings
What is the difference between a secured and unsecured loan?
A secured loan requires collateral (e.g., a car loan); an unsecured loan does not (e.g., a personal loan
Why is compound interest powerful?
Interest earns interest over time, making savings grow faster
If an email claims you won a $5,000 prize but asks for your bank details, what should you do?
Ignore and delete it; it’s a scam
What is my middle name?
Marie
Why is tracking expenses important in budgeting?
it helps prevent overspending and identifies savings opportunities
What is a good credit score range?
670-850
If you invest $1,000 at a 5% annual interest rate for 3 years, how can you figure out the interest?
1000x0.05 + Answer x0.05 + Answer#2 x 0.05
Name one way to protect your online banking.
Use strong passwords, enable two-factor authentication, or avoid public Wi-Fi
Roscoe, Bo, Lulu, Duke, Darla