Budgeting
This spending plan helps you set spending limits and plan for future financial needs
Budget
As soon as you get paid, you should immediately put a budgeted amount into savings. This is also called paying yourself ____.
Paying yourself first
Typically expressed as a percentage (%), this is the charge for borrowing money.
Interest rate
This document is a detailed record of your credit history that is compiled by credit bureaus
When you max out Soteria's 2:1 savings match as part of the IDA program, how much money will you have?
$3,000
Phone bills, gym memberships, and rent are examples of expenses that stay the same each month, also called:
Fixed expenses
Spending less money than you make is a good way to increase saving. This is also called living ____ your means.
Below
The original amount of money you borrow (excluding interest) is called this.
Principal
This 3-digit number is based on information in your credit report and represents your ability and willingness to repay a debt
Credit score
Applying for a credit card or auto loan will result in this type of credit inquiry, which does impact your credit score.
Hard inquiry
Aim to spend no more than this % of your income on housing
30%
Before saving for large purchases, prioritize saving for an emergency fund. $_____ is a good starter goal for an emergency fund.
$1,000
When borrowing money, lower credit scores mean ____ interest rates, while higher credit scores mean _____ interest rates.
higher interest rates; lower interest rates
Background checks and pre-approval offers require this type of credit inquiry, which does NOT impact your credit score.
Soft inquiry
This is a debt repayment strategy where you pay off your smallest debt first, while making minimum payments on the others
Debt snowball method
Entertainment, gifts, hobbies, and eating out are examples of "wants" instead of "needs", also called ______ expenses. It's important to trim these first if you're not following your budget.
Discretionary expenses
401(K)s and IRAs are both workplace and individual savings accounts designed to be used for this purpose.
Retirement savings
When you invest money, the interest you earn over the course of the year is expressed as this 3-letter acronym
APY - annual percentage yield
These are the 3 credit reporting bureaus.
Transunion, Equifax, Experian
Credit unions
The amount of money you take home after all deductions and taxes have been subtracted from your gross income
Net income
This type of savings account where you deposit money for a fixed period of time in exchange for a guaranteed higher interest rate. You cannot withdraw money early without paying a penalty.
Certificate of Deposit, or "CD"
Also called "interest on interest", this occurs when you earn interest on both the original amount of money you saved and the interest that's been added over time
Compounding interest
This is the most heavily-weighted factor used to determine a credit score
Payment history
This ratio (%) represents the amount of revolving credit you're using divided by the total credit limit available to you.
Credit utilization ratio