First Big Purchases
This financial tool helps you plan how to spend your income before you spend it.
What is a budget?
This three digit number helps lenders decide whether to approve a loan or credit card.
What is a credit score?
Financial coaches recommend having three to six months of expenses saved in this.
What is an emergency fund?
Buying your first home is an example of this type of financial goal.
What is a long term financial goal?
This is the difference between something you need and something you simply want.
What are needs versus wants?
These are expenses that usually stay the same each month, such as rent or a car payment.
What are fixed expenses?
This factor has the biggest impact on your credit score.
What is payment history?
Financial experts generally recommend saving enough to cover this many months of living expenses.
What are three to six months?
This type of account is commonly used to save for retirement through an employer.
What is a 401(k)?
This habit allows you to see exactly where your money is going each month.
What is tracking your expenses?
Financial experts often recommend following this rule, which divides income into needs, wants, and savings.
What is the 50/30/20 budget rule?
These three companies collect credit information and generate credit reports.
Who are Experian, Equifax, and TransUnion?
This is the amount of money left after your income minus all of your expenses.
What is cash flow?