Budgeting
What is setting financial goals?
This category should not exceed 15% of one's take-home pay.
What is transportation?
This is generally a one-time lump sum payment, with a fixed repayment period time and amount.
What is closed-ended credit?
The rate of interest charged on an outstanding balance.
What is Annual Percentage Rate (APR)?
This is the first phase of a coaching session.
What is the initial phase?
When monthly expenses are greater than monthly income.
What is a budget deficit?
Ideally, a person should dedicate a minimum of 10% to this category.
What is savings?
The use of or ability to draw on money or services before they are paid for.
What is credit?
What is the grace period?
Low-income, Spenders, Reduced-income, and Couples/Families are examples of this.
What are types of clients?
When a member receives 26 paychecks per calendar year.
What is bi-weekly income?
This category includes expenses such as: credit card payments, student debt, and collections accounts.
What is unsecured debt repayment?
A credit card is an example of this.
What is open-ended credit?
This is charged is the borrower pays off the loan before a certain date.
What is pre-payment penalty?
Conveying ideas, understanding, and acceptance of a members financial concerns is an example of this.
What is clear communication?
Ideally, housing expense should not exceed this amount.
What is 35%?
Vehicle registration is an example of this type of expense.
What is a periodic expense?
This typically has a high rate of interest, because it is considered a riskier type of credit.
What is unsecured?
When the final payment is greater than previous payments.
What is a balloon payment?
What is the financial assessment phase?
A member explains their annual salary is $60,000. Their GROSS pay is $2,500 each pay period.
What is bi-monthly income?
This should equate to 3-6 months worth of monthly expenses.
What is an emergency savings?
If the "owner" has fallen behind on payments, an automobile can be repossessed because it is this type of credit.
What is secured?
This gives certain rights to credit cardholders, such as restricting interest rate increases and over-the-limit fees.
What is the Credit Card Accountability Responsibility and Disclosure Act (CARD Act)?
Demonstrating to the member you are working with their best interest in mind, is an example of this.