Financial Literacy
Budgeting
Budgeting
What is a budget?
A plan for managing income and expenses over a certain period
If you pay a bill late, your creditor can not report this information to a credit bureau. True or False
False - making late payments can lower your credit score because it hints at financial difficulty by the borrower
This type of account typically pays interest on the money you deposit
What is a Savings account
What is gross income?
Total income earned before any deductions.
Name two ways you can be a victim of fraud.
unsecured passwords, sharing sensitive information, using Venmo with people you don't know, and using unreliable websites.
Something that is borrowed; a sum of money that is expected to be paid back, WITH interest.
A Loan
This card type of card will not help you build credit
What is a debit card
What is the fee called when you spend more money than you have in your bank account?
Overdraft fee
This type of loan is used to purchase a home
What is mortgage
1) Purchasing a new backpack for school (expense or income)
2) Getting a weekly $35 allowance for doing chores around the house (expense or income)
3) Buying Regino's pizza for $5.00 for lunch (expense or income)
1) expense
2) income
3) expense
A card issued by a BANK, that allows the holder to transfer money electronically from their bank account when making a purchase.
Debit Card
(Not to be confused with a credit card)
Good credit allows you to pay ________ amounts of interest.
smaller
How old do you have to be to open your own checking account?
What is 18
What is net income?
income remaining after all deductions, such as taxes and retirement contributions, have been taken out.
Who is featured on the United States $100 bill
Benjamin Franklin
I have enough money to pay the balance of my credit card, but I just pay the minimum monthly payment. Is that the best financial decision? True or False
*False*
Paying the minimum amount is not ideal. A person is charged interest when their credit card balance is not $0 by the end of their billing cycle.
List three things that impact your credit score.
1.) Length of credit
2.) Revolving utilization
3.) Missed payments
Name 2 banking institutions in your neighborhood
Bank of America, Chase, PNC, Wells Fargo, Citizens
This is the term for expenses that vary from month to month, like groceries, utilities, and entertainment.
What are "Variable Expenses
What does the acronym "ATM" stand for?
Automated Teller Machine
The 50/30/20 rule divides your income into three categories. Name them.
What are needs, wants, and savings
This three-digit number can greatly impact your ability to get loans, rent apartments, and even get a job.
What is a credit score?
What should your credit card balance be (by the end of the month) to avoid interest charges?
It should be $0.00 by the end of the month.
This expense category includes payments for electricity, water and heating
What are "Utilities"
What is Fraud?
What is a deliberate deception intended to secure unfair or unlawful gain.