budget
What's the difference between "need" and a "want"?
Needs are essential to live.
What does "pay yourself first" mean?
What is a credit score?
A number that shows how responsible you are with borrowing and paying back money.
What does "gross pay" mean?
Your income before taxes and deductions.
True or false: Using debt card builds credit
False.
If you earn $2,000/month, what is good minimum amount to save?
about 10% ($200)
What's the difference between saving and investing?
Saving is safe and short-term; investing grows money long-term with risk.
Name one Factor that affects your credit score.
Payment History, Credit utilization, length of credit history, etc.
What does "pay net" mean?
The amount you actually take home after deductions.
Myth: "you need to be rich to invest" what's the reality?
you can start with small amounts.
Name two common budget categories
Housing, Food, transportation, savings, entertainment
Why is compound interest powerful?
You can earn interest on your interest- money grows faster over time
If you only play the minimum on your credit card, what happens?
you pay more interest and stay in debt longer.
Name something deducted from your paycheck.
Taxes, SSN, medicare, insurance, retirement contributions.
Myth: "all debt is bad" reality?
Some debt but not all.
If you spend more than you earn, what is that called?
A deficit
If you invest $100/month for a year, how much have you put in?
$1,200
What does "APR" measure?
The yearly cost of borrowing, including interest and fees.
If your gross pay is $800 but your net pay is $680, how much was deducted ?
$120
Myth: "credit cards are always dangerous" reality?
They're safe if used responsibly.
What is the 50/30/20 rule?
50% needs, 30% wants, 20% savings/debt payoff
Spreading money across different investments to reduce risk.
You borrow $500 and must pay back $575. How much interest did you pay?
$75.
What is a W-4 from used for?
Tells your employer how much tax withhold from your paycheck.
Myth: "you don't need an emergency fund if you have a job" reality?
Anyone can face unexpected expenses or job loss.