Five Foundations
Amount in a student emergency fund
$500
Rate that is charged on debt or paid on an investment
Interest
A written cash flow plan
Budget
Decrease or loss in value
Get out of this
Debt
Savings account set aside to be used only for emergencies
Emergency Fund
Item bought without previous planning
Impulse purchase/buy
Type of card that allows user to finance purchases
Credit Card
Pay cash for this depreciating item
Car
Interest paid on interest previously earned
Compound interest
Zero-based budget
Measure of individual's credit risk
Credit Score
Pay cash for this which helps prepare you for your future career
College
Saving money over time for a large purchase
Sinking fund
money divided into categories stored in envelopes
Envelope system
Method of debt repayment; pay off smallest debt first, then use that amount to tackle the next
Debt Snowball
Build wealth and do this