Spending wisely
What is the term for the act of purchasing things you want rather than things you need?
Impulse buying
What type of goal is typically measurable and has a specific deadline?
A SMART Goal
What is the term for the money you earn from a job or investments?
Income
What is a simple method of tracking money coming in and going out each month called?
A budget
What tool allows you to store and track your money electronically, often linked to your bank account?
A debit card
Which of these is an example of a fixed expense: rent, entertainment, groceries, or dining out?
Rent
If you want to save $1,200 for a new phone in 6 months, how much should you save each month?
Which term refers to a financial obligation you owe to another party?
Debt
What is the first step in creating a budget?
Listing your income
What is a credit card primarily used for?
Borrowing money to make purchases, which must be paid back with interest if not paid in full each month
What strategy involves comparing prices across different stores or websites to find the best deal?
Price comparison
When setting financial goals, why is it important to break them down into smaller, actionable steps?
To make them more achievable and prevent feeling overwhelmed
What does APR stand for in relation to credit cards or loans?
Annual Percentage Rate
What is the term for money that is left over after you've paid for essential living expenses and obligations?
Discretionary income
What financial tool is typically used for saving money in a tax-advantaged account for retirement?
An IRA (Individual Retirement Account)
What is the 50, 30, 20 Rule?
Splitting your income into three categories, 50% goes to needs, 30% goes to wants, 20% goes to savings.
What is the term for a long-term financial goal that involves accumulating enough savings or investments to retire comfortably?
Retirement planning
What is the difference between a "credit score" and a "credit report"?
A credit score is a numerical representation of your creditworthiness, while a credit report is a detailed record of your credit history.
What budgeting method uses categories for needs, wants, and savings, and assigns a specific dollar amount to each category?
The envelope method
What is the term for a long-term loan typically used to buy real estate, often with monthly payments that include both principal and interest?
mortgage
What is the term for the amount of money you would spend each month if you did not change any of your current spending habits?
Your spending baseline
What does each letter of SMART mean in "SMART Goal setting"
Specific, Measurable, Achievable, Relevant, Time-Bound
What term describes the money you make from investments or savings, often referred to as “earning money from your money”?
Interest (or Returns)
What is the purpose of a "zero-based budget," where every dollar is assigned to a specific expense or saving goal?
To ensure that your income equals your expenses, leaving no money unallocated and preventing overspending
What is the name of the financial tool that allows individuals to track their investments and includes assets like stocks, bonds, and mutual funds?
A brokerage account