BUDGET
A plan for how to spend and save money over a period of time.
What is a BUDGET?
A service that allows you to check your bank account balance and make transactions from your phone or computer.
What is online banking?
A plastic card that allows you to borrow money to make purchases, which you pay back later.
What is a credit card?
Money that is used to buy something with the expectation it will grow in value over time.
What is an investment?
The government agency responsible for collecting federal taxes in the U.S.
What is the IRS (Internal Revenue Service)?
A budgeting rule where 50% of income goes to needs, 30% to wants, and 20% to savings and debt repayment.
What is the 50/30/20 rule?
A card linked to your bank account that allows you to pay for purchases or withdraw cash from an ATM.
What is a debit card?
The maximum amount of money you can borrow on a credit card.
What is a credit limit?
A share in the ownership of a company, representing a claim on its assets and earnings.
What is a stock?
The amount of money deducted from your paycheck for federal taxes.
What is federal income tax?
An expense that doesn’t change month-to-month, such as a weekly or monthly Metro-Card, or cell phone expense, is an example of.
What is a FIXED expense?
The rate at which your savings account earns money.
What is interest?
A number that represents how responsible you are with borrowing money.
What is a credit score?
A type of investment where you loan money to a company or government in exchange for periodic interest payments.
What is a bond?
A form you receive from your employer at the end of the year showing how much you earned and how much tax was withheld.
What is a W-2 form?
Spending less or equal to what you earn and avoiding taking on too much debt.
What is LIVING within your means?
The number assigned to your bank account to identify it for transactions.
What is an account number?
A type of credit card designed to help people with no credit history build credit.
What is a secured credit card?
The most common place where people buy and sell stocks.
What is the stock market?
The percentage of your income that goes to Social Security tax.
What is 6.2%?
A fund you parents create to cover unexpected financial situations, like car repairs or medical bills.
What is an EMERGENCY fund?
The fee a bank charges you for spending more money than you have in your account.
What is an overdraft fee?
The amount you must pay each month to avoid late fees on a credit card.
What is the minimum payment?
An online platform or service that allows individuals to buy and sell investments.
What is a brokerage?
The portion of taxes taken from your paycheck to help fund Medicare.
What is Medicare tax?