Budgeting
A pair of basic shoes for school is a need; a pair of $200 limited-edition Jordans is considered this.
A want
Money set aside for unexpected costs like a flat tire or a broken phone screen.
Emergency Fund
This term represents a piece of ownership in a single corporation.
a share
Unlike a debit card, which takes money from your bank account, using this card is essentially taking out a small, short-term loan.
Credit Card
The general rise in prices over time, which reduces the "purchasing power" of your money
Inflation
Costs that change from month to month based on usage, such as groceries or gasoline.
Variable Expenses
Saving for a car, college, or a new gaming console are examples of these
Financial Goals
This is the general relationship between risk and potential profit in the investing world.
High Risk, High Reward or return
This 3-digit number (ranging from 300 to 850) acts like a "financial GPA" for how well you handle borrowed money.
Credit Score
A cost that is the same every month (like a car payment or a $15 Spotify subscription).
Fixed Expense
This is the fixed amount of money an employee is paid for each pay period, regardless of hours worked.
Salary
A bank account used specifically to store money you aren't going to use right away that typically earns interest.
Savings Acoount
This popular stock market index tracks the performance of 500 of the largest companies in the U.S.
S&P 500
This is the term for a fee some cards charge once a year just for the privilege of having the account.
Annual Fee
The value of the thing you didn't choose. (If you spend $20 on a movie, the opportunity cost is the pizza you could have bought instead).
Opportunity Cost
The amount of money you have left at the end of the month when your income is higher than your expenses.
Surplus
This is the money your principal (the original amount saved) earns while it sits in a bank account.
Interest
If you have a part-time job, you can put your earned income into this tax-advantaged account to save for retirement.
Roth IRA
This is a great way for teens to build credit without their own card: being added to a parent’s existing account as an ________ ____.
Authorized User
The original amount of money you deposit into a savings account or borrow for a loan.
Principle
A written record that summarizes all of your income and spending over a specific period of time.
A cash flow statement or a budget
This "magic" financial concept allows your money to grow even faster by earning interest on both your original deposit and the interest you've already earned.
Compound Interest
This state-sponsored plan allows you or your parents to invest money specifically for your future college tuition tax-free.
529 plan
To keep a high score, experts recommend your Credit Utilization—the amount you owe compared to your limit—stays below this percentage.
30%
How quickly you can turn an asset into cash.
Liquidity