Budgeting
This is telling your money where to go before the month begins
What is a budget?
This is borrowing money that must be paid back with interest
What is debt?
This account is used for everyday spending
What is a checking account?
This is money set aside for unexpected expenses
What is an emergency fund?
This is earning interest on both your money and past interest
What is compound interest?
This type of budgeting assigns every dollar a job
What is a zero-based budget?
This 3-digit number represents your creditworthiness
What is a credit score?
This account is used for your emergency fund money
What is a savings account?
This is the recommended amount for a starter emergency fund in Ramsey’s plan for a college student
What is $1,000?
This describes spreading money across different investments
What is diversification?
What is Income-Expenses=0
This is the cost of borrowing money, usually shown as a percentage
What is interest (APR)?
This protects your money in a bank up to $250,000
What is FDIC insurance?
This type of savings is for planned future expenses like a car or vacation
What are sinking funds?
This is the biggest factor in growing wealth through investing
What is time?
This is the recommended first savings goal in Ramsey’s plan for high schoolers
$500
This debt payoff method focuses on smallest balance first
What is a checking account?
This is the record you keep to track deposits, withdrawals, and your current account balance
What is a check register?
This is the recommended full emergency fund after getting out of debt
What is 3–6 months of expenses?
This retirement account is tax-free when you withdraw later
What is a Roth IRA?
This is the practice of where your money actually goes after you’ve made a budget
What is tracking expenses (or budget tracking)?
This happens when you only pay the minimum on a credit card
What is paying much more in interest over time?
This fee happens when you spend more money than you have in your checking account
What is an overdraft fee?
This habit is the most important factor in successful saving over time
What is consistency (or discipline)?
What is the parameter you can evaluate to determine if an investment is active vs passive investing
What is the expense ratio?