Accounts
What is the main purpose of a checking account?
Allows you to have easy, day to day access to your money
What are some ways to budget your money?
Excel/Google Sheets, paper, other online tools
Anything that works for you!
What is a short term goal?
A goal that can be achieved within the next few months or year
What are some things that you can have debt from?
Credit card, student loans, car payment, etc
In their example, Brennan was budgeting for a house
false - it was a car
What is the main purpose of a savings account?
Money you don’t need immediate access to & can sit there for you to earn interest
What are some things that you should include in your budget?
Food, household items, transportation, personal, health, extra-curriculars, education, general, total etc
What is a long term goal?
A goal that can be achieved in 2+ years
What are some important things to know about your debt?
Interest rate, minimum payment (% or #), total cost, how long it will take to back off, etc
An important part of budgeting is to differentiate between wants and needs
true
What is a money market account?
A blend between a checking and savings account, you only need limited access to this money
What is the correct way to budget your money?
There isn’t one! Whatever works best for you personally
What are some of the keys things to look at when setting a goal?
Target date, cost estimate, amount already saved, how to achieve goal, etc
How do you figure out how long it will take to pay off your debt using your min. payment?
Total debt ÷ monthly payment = months to pay off
Months/12 = years to pay off
The first step in budgeting is to get a credit card
What does an IRA (account) stand for, and what is it used for?
Individual Retirement Arrangement
Tax-deductible/deferred way to invest money for retirement
What are some things you can do within your budgeting sheet to help you?
Create pie charts, use formulas, highlight rows, etc
How can you track how much money you’re putting toward your goal?
Excel/Google Sheets, automatic payments, charts/graphs, etc
What are 3 important things to make note of for every month/year you’re repaying your debt?
Amount paid
Interest/penalty
Balance remaining
Cash is real money
true (unfortunately)
What is a brokerage account?
A way to invest money you plan to use before the age of 59 ½ and won’t get penalized for
How do you earn more money from budgeting?
You don’t! Budgeting doesn’t earn you money, it simply helps you manage it
How often should you be putting money toward your goal?
Monthly, bi-weekly, weekly, daily, etc
What are some ways to potentially pay off your debt faster?
Pay more than the minimum, take a smaller loan (if possible), etc
Budgeting is hard and you should be scared of it
FALSE! You all can do it!!!