Financial Goals
A goal that spans from a month to one year
Short Term
A budget is...
A plan for your money
Being Liquid means...
What is Cash is accessible (easy to get to)
Companies care about your financial well-being and will recommend that you not spend your money.
True or False?
False
This type of account earns little interest but is very liquid! Great for your emergency fund!
Regular Savings Account
A Goal than spans from 3-10 years
What is Medium Term Goal
List 3 budget factors
Limited Resources, yearly expenses, needs vs wants, fixed vs variable, giving, opportunity cost
An emergency fund should come after investing
False. Emergency fund first then investing
In general you should ____ ____ than you make. (Two Words)
Spend Less
This type of account is for everyday purchases and bills! It is connected to your debit card! (Not a credit card)
Checking Account
A goal that spans for the rest of your life (10+ years)
What is Long Term
Fixed expense
Constant and obligatory, such as monthly rent or a house payment
An emergency fund should have
3-6 months worth of expenses saved up
This budgeting method that allocates every dollar of income to a specific purpose, starting from scratch each month.
This type of account earns a fixed interest for a specified period of time. It is low in liquidity!
What is another word for discretionary?
Wants
Variable Expense
Which change according to changes in lifestyle, such as food and entertainment costs
Name 3 things you can do to save money
$$$
We talked about the 50-30-20 rule... what goes with each number?
Needs 50, Wants 30, Savings 20
This type of account is like a savings account and checking account combined together and earns higher interest!
Money Market Account
Tell me what is SMART
SMART- Specific, Measurable, Action-oriented or Achievable or Attainable, Realistic with a Time frame
Opportunity Cost
What you give up when you make a decision
Pay Yourself First means...
income is first saved or invested before monthly expenses
We talked about the 3 Rs that can help you balance your budget...What are they?
Reality, Responsibility, & Restraint
*(Daily Double)* Monetary charge for the privilege of borrowing money, typically expressed as an annual percentage rate.
Interest