Earning Income and Careers
A two-year degree that can be earned after high school is an _____ degree.
Associates Degree
What are 3 needs?
Food, utilities, rent/mortgage
Your car breaks down and you need to get it fixed. This is an example of why it is important to have an ___________ fund
Emergency fund
Borrowing money at a low rate of interest to buy a house with an affordable monthly payment is an example of good debt. True or false
True
What is riskier, savings or investing?
Investing
Give one example of a standard deduction from your paycheck.
Federal taxes
A card that is directly tied to your personal bank account and can be used to make purchases is called a ___ card.
Debit card
When you get paid, what is the first thing you should do?
Pay yourself (Save, save, save)
Paying a high interest rate on credit card balance that you are not able to pay off each month is an example of ____ debt.
Bad
What is better for achieving long-term goals, savings or investing?
Investing
The income you earn after taxes is ____ income
Net income
What is a card that, when used, borrows money that you must pay back each month?
Credit card
On average, how many months of expenses should you have saved in your emergency fund?
3-6 months
Your ___ _____ is a numeric rating that represents your ability meet your financial obligations. It is based on your history of paying your bills and your current financial situation.
Credit Score
Your greatest asset when investing is _____.
Earning power
The income you earn before taxes is ____ income.
Gross income
If you attempt to pay for something with your debit card or check but you don’t have enough money in your account to cover the cost, you will be charged an _____ fee by the bank.
Overdraft free
When interest earns interest, it is called _________ interest
Compound interest
Is 630 a good credit score?
No, it's fair
How do you know that you are ready to start investing? Must tell us 2 of 3 indicators
Emergency Fund is full
High-interest loans are paid off
Does not have big financial changes coming up
Owning properties and renting them out is an example of what type of income?
Passive
If your bank goes out of business, why is your money still safe?
FDIC
The amount of money you invested or owed BEFORE interest is the _____.
Principal
Name two of the three things you will need to have before you get approved for a loan to buy a car.
Savings for down payment
Credit score
Budget (what can you afford)
______ is a risk management strategy that involves spreading your investments out into different types of investment opportunities.
Diversification