Vocabulary
Employment that requires specialized training.
What is a career?
An item you would like to have, but do not need to live a safe life.
What is a want?
When your employer puts your paycheck directly into your bank account.
What is direct deposit?
When you are recording a transaction on your check register under debit, you are doing what to the existing balance.
What is subtracting from the existing balance?
A tax paid on goods and services, added to the price of items a the time of purchase.
What is a sales tax?
A type of account that earns interest and is used for long-term storage.
What is a savings account?
A plan for how you will spend, save, and donate your money.
What is a budget?
The address, the name, the account number, routing number, check number, the memo line, amount box, amount line, the signature line.
The price you pay to borrow money.
What is interest?
Suppose you have $100 in a savings account earning 2% interest a year. After 5 years, how much money would you have?
A. More than $102
B. Exactly $102
C. Less than $102
A. More than $102
$100x.25x5=$10
Adding or putting money into an account
What is deposit?
This means setting aside money for savings before you spend it on anything else.
What is "Pay Yourself First"?
The amount of money the FDIC insures savings accounts for (in USD).
What is $250,000?
True or False: You can spend as much money as you want on a credit card.
False: Credit cards have a limit or maximum amount you are allowed to charge.
Money you receive in exchange for work, such as allowance or a job.
What is income?
A document that orders a financial institution to pay a specific amount from the issuer's account to the person or business named.
What is a check?
An expense that stays the same every month, such as rent or a subscription.
What is a fixed expense?
A bank account that allows easy access to funds for everyday transactions.
What is a checking account?
To avoid paying interest on a credit card, you must pay this every month.
What is the full balance?
The amount of money you take home after taxes and deductions.
What is net pay?
Money you owe because you borrowed it and need to pay it back.
What is debt?
The 50/30/20 rule suggests 50% of income goes to needs, 20% to savings, and 30% to this.
What are wants.
Money that you borrow and have to pay back later, usually with extra money on top called interest. An example of this is a mortgage.
What is a loan?
How much can you spend if your credit limit is $2000, but you just made a $500 purchase?
What is $1500?
If you buy a $2.00 bag of chips but the cashier asks for $2.14, what is the extra 14 cents called?
What is sales tax?
An expense that varies from month to month.
What is a variable expense?
Julie makes $100 babysitting and $50 for household chores each week. What is her total monthly income?
What is $600?
What should your credit card balance be by the end of the month?
It should be $0 by the end of the month.
A three-digit number that tells lenders how likely you are to pay back borrowed money.
What is a credit score?
The amount of money you earn before taxes are taken out.
What is gross pay?
A budget where your expenses are not more than your income and it allows you to save money for future use.
What is a realistic budget?
Money set aside for unexpected, necessary expenses, like replacing a broken phone or fixing a bicycle.
What is an emergency fund?
A fee charged by banks for spending more money than you have in your account.
What is an overdraft fee?
What is a credit card?
If you make $15 per hour and work 10 hours, what is your gross pay?
What is $150?
The money you spend on things you need or want, like bills or snacks.
What are expenses?
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 the best decision. A person is charged interest when their credit card balance is not at 0 by the end of the month.
What is a bank?
When you are recording a transaction on the transaction register as a credit, you are doing what to the existing balance.
What is adding to the existing balance?
The form an employer must send you by January 31st to file your taxes.
What is a W2?
Taking money out of an account.
What is withdrawal?
David's expenses for each month are $40 for his phone, $20 for eating at restaurants and $30 for savings. What are his total monthly expenses?
What is $90?
The amount of money originally deposited into a savings account.
What is the principal? or Starting balance
A card that takes money directly from your checking account when you swipe it.
What is a debit card?
Money that is deducted from your paycheck to pay for public services like schools and roads.
What are taxes?
The frequency in which you get paid (weekly, biweekly or monthly)
What is pay schedule?
If you make $500 each week and there are 4 weeks in the month, how much do you earn each month? Your expenses are $1300 each month. How much does this leave you for additional spending or to put into savings?
What is $700 each month?
What is $1449.00?
The maximum amount of money a lender will allow you to borrow on a credit card.
What is a credit limit?
The agency that is responsible for collecting federal taxes in the United States.
What is the IRS?
A booklet or spreadsheet used to record money transactions.
What is a check register or what is a transaction register?
Briana saves $20.00 each month to buy a computer. The computer costs $500.00. How many months will it take for her to save enough money?
What is 25 months?
If you earn $100.00 and save 75%, this is the amount you have left for spending.
What is $25?
What is your available credit if your credit limit is $2000 and you owe $1300?
What is $700?
True or False: Net pay is the number used to create your monthly budget.
True. You can only budget with money you actually receive in your bank account.