SAVING
What is a savings account?
This type of account earns interest and helps you grow your money over time.
What is the term for all money coming into your account?
Income
What is a budget?
The key to financial literacy and abundance!
This is a plan for how you’ll spend and save your money each month.
What is a savings account?
This is a secure place to store your money that earns interest over time.
What is a loan?
a thing that is borrowed, especially a sum of money that is expected to be paid back with interest.
What is an emergency fund?
Amount of money you set aside for unexpected events?
What is the term for all items you spend your money on?
Expenses
What is a gross income?
This is the amount of money you earn before taxes and deductions.
What is the difference between a credit and debit card.
You borrow money (that must be paid back) with a credit card.
You use your own money with a debit card.
Which type of student loan DOES NOT accrue interest?
Subsidized Loans.
What does it mean to "pay yourself first"?
Focus on savings FIRST (travel/vacation retirement, et cetera), then take care of your fixed expenses.
What should you include when creating a budget?
(All) Income and expenses
What is a credit score?
This three-digit number helps lenders decide how risky it is to loan you money.
What is an overdraft?
This occurs when you spend more money than you have in your account.
What is the typical grace period for federal student loans after graduation before repayment begins?
6 months.
What is a "sinking fund"?
This type of savings goal is for something specific, like a vacation or a new laptop.
What does it mean to "allocate funds"?
This is the process of dividing your income into categories like rent, food, and entertainment.
What is a net income?
This is the amount of money you actually take home after taxes and deductions.
What is a routing number?
This is the unique number used to identify your bank and is often needed for direct deposits.
What is the maximum amount a dependent undergraduate student can borrow in federal loans for their first year?
$5,500
What is the difference between saving and investing?
Saving involves putting cash in safe, easily accessible places, while investing means buying assets like stocks or real estate that may fluctuate but aim to grow in value over time.
What is the 50/30/20 rule?
50% for needs, 30% for wants and 20% for savings.
What is a fixed expense?
This type of expense stays the same each month, like rent or a car payment.
What is a maintenance fee?
This is a fee banks may charge monthly just for having an account open.
What is the (economic) purpose of a loan?
Loans allow for growth in the overall money supply in an economy and open up competition by lending to new businesses.