Budgeting
Necessary Purchases like food and water
Needs
What kind of card spends money straight from your bank account?
Debit card
What is debt?
Money that is owed
Funds classify as what kind of savings?
Long-term
What are the three main types of earned income?
Salary, wages and commission
Give three examples of wants
Video games, jewelry, etc.
What is interest?
Extra money paid as the cost of borrowing money
What are two examples of good debt?
Mortgages, student loans, etc.
Interest vs investment, higher risk/reward, withdrawal restrictions, etc.
What are the three main types of taxes?
Income, property and sales
50: Needs
30: Wants
20: Savings
Give one example of something that can raise your credit score
What is an interest rate?
The percentage of the principle amount that must be paid back as interest
What is a 529 fund used for?
What is an example of something that tax dollars are used for?
Public education, infrastructure, public healthcare, etc.
What are the three types of savings?
Short-term, Long-term, Emergency
How does a credit card work?
The bank pays now, and you pay the bank back later
What are two examples of bad debt?
Credit card debt, luxury item debt, etc.
IRA is funded by personal contributions, while a 401K is funded by personal and employer contributions
What is an example of unearned income?
Interest on savings, investment dividends, government benefits, etc.
Want, because it is a non-essential
What is the difference between simple and compound interest?
Simple interest is based solely on the initial amount, while compound interest is based on the initial amount plus prior interest
How do funds increase in value?
How do tax brackets work?
The more money you make, the higher percentage in taxes you pay