Budgeting Basics
If you spend more money than you have, you create this.
What is debt?
This is what you receive when you work and get paid.
What is a paycheck?
This is a safe place to keep your money that earns a little extra.
What is a bank, savings account, or investment account?
This is the term for a long-term (life) job that you do to earn money.
What is a career?
This is when you pay back money you borrowed.
What is repayment?
This term refers to the amount of money you earn after taxes.
What is net income?
This is a number that represents your creditworthiness.
What is a credit score?
This is a special fund where you can save money for emergencies.
What is an emergency fund?
This is a common path after high school where students continue their education at a higher level
What is attending college?
This is a promise to pay back money you borrow, often with interest.
What is a loan?
The practice of creating a plan to manage your money is known as this.
What is budgeting?
This term describes money going out of your pocket.
What is an expense?
Less than a year
This is a type of training program that helps you learn a specific trade or skill after high school.
What is a vocational or trade school?
This is a term for being careful/ smart with how you spend your money.
What is being financially responsible?
This type of expense does not change from month to month, such as rent or mortgage.
What are fixed expenses?
This is the money you put away for later purchases
What is savings/ savings account?
When you save money, you can use it for this in the future.
What are big purchases?
These are jobs you can have while still in school to help pay bills and prepare for your future career.
What are part-time jobs?
This is a plan you create to ensure you don’t spend more than you earn.
What is a financial plan? or financial budget?
This is the term for the total amount of money you have left over to spend after taxes and after necessary purchases are made
What is disposable income?
You use this to pay for things instead of cash, and it can be paid back later.
What is a credit card?
This is when you earn extra money from the money you have saved.
What is interest?
This is the term for the money you may need to pay back after college, typically in the form of loans.
What is student debt or student loans?
This is an important skill that helps you make smart choices with your money.
What is financial literacy?