Budgeting
This budgeting method limits overspending by using physical cash for categories.
What is the Envelope Budgeting Method?
This interest is earned on both the initial principal and accrued interest.
What is Compound Interest?
Ownership in a publicly traded company.
What is a Stock?
The component of a loan where you are paying off the loaned amount.
What is Principal?
A credit score of ___ or above is typically categorized as this, making it easier to qualify for loans and credit cards.
What is 700?
An expense that can change month to month or payment to payment.
What is a Variable Expense?
This tiered account type typically offers higher rates but require larger balances.
What is a Money Market account?
This term refers to spreading investments across asset classes to reduce risk.
What is Diversification?
Credit card interest is typically expressed as ____.
What is APR (Annual Percentage Rate)?
This term refers to the act of purchasing goods or services without planning or considering their long-term financial impact.
What is Impulse Buying?
This type of budgeting accounts for every dollar, assigning it to a category.
What is Zero-Based Budgeting?
This feature of a checking account allows you to spend more money than you have in the account, often incurring a fee.
What is Overdraft Protection?
A retirement account where the investment occurs pre-tax and the withdrawals are taxed.
What is a Traditional IRA?
The borrower writes a post-dated check for the loan amount plus fees to access money today.
What is a Payday Loan?
This term refers to the maximum amount of credit a lender allows you to borrow.
What is a Credit Limit?
This budgeting method requires allocating a fixed percentage of income to needs, wants, and savings.
What is the 50/30/20 rule?
This term refers to the bank-issued card that allows you to withdraw cash or make purchases directly from your checking account.
What is a Debit Card?
This tax-advantaged savings account is specifically designed to help families save for education expenses.
What is a 529 (College) Plan?
When someone becomes equally responsible for repayment of a loan and it can impact their credit score.
What is Co-Signing?
This type of tax is added to the price of goods and services at the time of purchase and varies by state or municipality.
What is Sales Tax?
This term refers to money set aside for unexpected expenses.
What is an Emergency Fund?
FDIC insurance covers deposit accounts up to this amount.
What is $250,000?
Raw materials traded on markets.
What are Commodities?
This type of interest rate changes over time and is often tied to a financial index, making payments unpredictable.
What is a Variable Interest Rate?
The federal government uses tax revenue for these two primary expenses.
What are "Social Security and Defense"?