Budgeting
Money left over after spending less than you earn
What is a Surplus?
Electricity, water, and heating are examples of these.
What are Utilities?
The maximum amount you can spend on a credit card.
What is a Credit Limit?
A home loan is called this.
What is a Mortgage?
This helps cover unexpected expenses like car repairs or emergencies.
What is an Emergency Fund?
The amount you earn before taxes are taken out.
What is Gross Pay?
Comparing this at the grocery store helps save money.
What is Unit Price?
This fee may happen if you miss a payment.
What is a Late Payment Fee?
This type of loan has an interest rate that can change over time.
What is a Variable-Rate Loan?
Paying yourself first means doing this before spending money elsewhere.
What is saving money first?
A budgeting strategy where cash is divided into envelopes for categories.
What is the Cash Envelope Budget?
Items that are nice to have but not necessary.
What are Wants?
This type of debt does NOT require collateral.
What is Unsecured Debt?
A longer loan term usually lowers monthly payments but increases this.
What is total interest paid?
A debit card spends money directly from this account.
What is a Checking Account?
This type of expense changes month to month.
What is a Variable Expense?
The overall expense of living in a certain area.
What is Cost of Living?
A credit card with money loaded onto it before spending.
What is a Prepaid Debit Card?
Money paid upfront when buying a car or house.
What is a Down Payment?
This loan payment schedule divides payments over time into principal and interest.
What is Amortization?
This is usually the biggest expense for most households.
What is Housing?
Spending more money than you earn creates this.
What is a Deficit?
This number affects your loan rates and ability to borrow money.
What is a Credit Score?
This kind of loan can trap people in a cycle of debt because of very high interest.
What is a Payday Loan?
This type of mortgage keeps the same interest rate for the whole loan.
What is a Fixed-Rate Mortgage?