Vocabulary
Fixed Expenses
an item in a budget whose cost is the same each month (example: rent/mortgage)
Retail Credit Card
A credit card you can only use at a specific store
How old do you have to be to apply?
18
What is the purpose of a checking account?
To keep your money safe, so you don't have large amounts of money on you.
What is a short term savings account?
Saving for things you want in the near future
Discretionary Expenses
Major Credit Card
A credit card you can use at any store
What will you have to put on an application for a credit card?
employment, age, address, expenses
What does deposit mean?
to put money into your checking account
What is a long term savings account?
Money you save for your future (retirement)
Periodic Expenses
An item in a budget whose cost will appear periodically throughout the year (example: doctors visit)
money you borrow from the bank for large purchases that you need to pay back over time.
What is a credit score?
A number given to you based on how trustworthy you are. A higher credit score means you pay things off, a low credit score means you have more debt
What does withdrawal mean?
Taking money out of your checking account
What is an emergency fund?
Money from your savings you use on emergencies
Variable Expenses
An item in a budget whose cost is different each month (example: groceries)
paying the minimum balance or paying the total balance
What is income?
how much money you bring in each month
What is an ATM?
A place you can go to deposit or withdraw money
What does pay check to pay check mean?
You aren't able to save because all of your income goes towards bills
Give an example for each type of cost
answer will vary
What are warnings you must think of before using a credit card?
If you don't pay off your balance, interests rates will add money to your balance. Don't spend more then you can afford to pay off.
What is a creditor?
Someone who will lend you money
What happens if you use more money then you have in your checking account?
You will have to pay a fee to the bank
What is an investment counselor?
Someone you can talk to who will help you determine where to invest your money.