Personal Finance 1
A percentage paid to a lender for the use of borrowed money is called
interest
Putting money into stocks, bonds, or mutual funds is called this.
Investing
Paying off a $150 balance by December is an example of a what type of goal?
What is a short-term goal?
Rent, groceries, utilities, and basic transportation are examples of?
What are NEEDS?
I am the electronic method allowing an employer to distribute your earnings directly into your checking account.
What is direct deposit or EFT
This document shows how much money is in your bank account and recent transactions.
Bank Statement
A budgeting method that breaks income down into 3 categories: needs, wants, savings.
What is the 50-30-20 method?
Failing to pay back your loans can hurt this key financial score.
Credit Score
Money in your paycheck that you earn after all taxes and fees are taken out.
What is Net pay or Take home pay
The account for holding money you don't plan to spend immediately
savings account
The total money you earn before taxes and deductions.
Gross Income
Item used to pay for everyday transactions
Debit card
Something, (typically money) that is owed.
Debt
Saving $5,000 for a used car within 3 years is an example of what type of goal?
What is a mid-term goal?
The fee a bank charges to an individual to have an account open with them.
Maintenance fee or monthly service fee
Rent is an example of what type of expense
Fixed
I am the fee a bank would charge you if you spent more money from your checking account than you actually have in it.
What is an overdraft fee?
The S in SMART goals?
Specific
The amount that your money is insured in the event your bank fails (FDIC)
Up to $250,000.00
Dining out, streaming services, hobbies, and concert tickets are all examples of?
What are WANTS?
The timeframe for this type of goal is 5 or more years.
What is a long-term goal?
Paying only this amount on your credit card each month can lead to growing debt.
Minimum Payment
The idea that your money grows faster when you earn interest on both your principal and previous interest.
Compound interest
Used if you need to withdraw cash from your checking account?
What is an ATM?
Something that you own that increases in value
Asset