Show Me the Money!
This is the money you earn from a job, allowance, or other sources.
Income
Food, water, and shelter are examples of this type of expense
Needs
This is what you do when you set aside money for future use.
Saving
This number helps lenders determine how likely you are to repay a loan.
Credit score
Creating this helps you track income, expenses, and savings goals.
Budget
The money you spend on rent, food, and fun is called this.
Expenses
Buying the latest smartphone when your current one works fine is an example of this
Wants
Splurging on fast food every day instead of meal prepping at home is an example of this habit.
Overspending
Borrowing money to buy something now and paying it back later is using this.
Credit
This budgeting rule suggests dividing your income into 50% for needs, 30% for wants, and 20% for savings and debt repayment.
50/30/20 rule
If you spend more money than you make, you are in this financial situation
Debt
This is a budgeting method that helps you decide between needs and wants by assigning every dollar a purpose.
Zero-based budgeting
This financial tool helps you plan how much to save, spend, and use for debt.
Budget
Paying only the minimum on your credit card bill can lead to this.
Interest or debt
This is money set aside for unexpected expenses.
Emergency fund
This is your income before taxes and deductions are taken out.
Gross income
When you buy something because it’s trending but not necessary, you’re giving in to this kind of spending.
Impulse buying
This savings strategy involves paying yourself first.
Automatic savings
This is the interest rate charged annually when you borrow money on a credit card.
What is APR (Annual Percentage Rate)?
This type of financial goal focuses on things you want to achieve in less than a year.
Short-term goal
This is your income after all deductions, also known as take-home pay.
Net income?
You have a high-interest loan that is rapidly accumulating debt. You also have an opportunity to go on an exclusive networking trip that could potentially lead to a higher-paying job, but there’s no guarantee. Which one is the best approach to this situation?
Pay down your debt to avoid spiraling interest charges
This budgeting method gives every dollar a “job” including savings and debt payoff.
Zero-based budgeting
This loan is often advertised as fast cash before your next paycheck, but can trap borrowers in a cycle of debt due to high fees and interest.
Payday loan
This is a money goal that usually takes longer than a year to reach, like buying a car or going to college.
Long-term financial goal