Budgeting
This financial plan helps you track your income and expenses over a specific period.
What is a budget?
This term refers to the maximum amount of money that can be borrowed on a credit card.
What is the credit limit?
Specific, Measurable, Achievable, Relevant, Time-bound
What is SMART in the context of goal setting?
The amount charged by lenders for borrowing money, usually expressed as a percentage.
What is an interest rate?
This type of account allows you to earn interest while keeping your funds accessible for everyday transactions.
What is a checking account?
These expenses, like rent and car payments, stay relatively constant each month.
What are fixed expenses?
This type of charge occurs when you do not pay off your credit card bill in full by the due date.
What is interest?
These goals are set for achievement over an extended period, often spanning several years.
What are long-term goals?
This type of interest is calculated on the initial principal only.
What is simple interest?
This is the amount of money a bank pays you for keeping your money in a savings account, typically expressed as a percentage.
What is an interest rate?
The 50/30/20 rule suggests allocating this percentage of your income to needs.
What is 50%?
This score is used by lenders to determine your creditworthiness based on your credit history.
What is the credit score?
This technique involves breaking down larger goals into smaller, more manageable tasks.
What is chunking?
This type of interest is calculated on the initial principal and also on the accumulated interest from previous periods.
What is compound interest?
This type of bank loan is typically used for purchasing a home or property and is secured by that property.
What is a mortgage?
This budgeting method involves using envelopes to allocate cash for different spending categories.
What is the envelope system?
This term refers to the process of taking money from your credit card account to withdraw cash.
What is a cash advance?
This term refers to the motivation and determination to achieve a set goal.
What is goal commitment?
This term refers to the minimum amount you must deposit to open a savings account with interest.
What is the minimum balance requirement?
This banking service allows you to electronically transfer money between accounts or to other individuals without needing cash or checks.
What is online banking?
This term refers to the difference between your income and expenses, which should ideally be positive.
What is net income or cash flow?
This action occurs when you fail to make a required payment on your credit card.
What is defaulting?
In this type of goal, individuals outline their desired results, such as weight loss or financial savings.
What are outcome goals?
The Federal Reserve sets this important interest rate that influences all other rates in the economy.
What is the federal funds rate?
Banks offer this type of fee-free account designed for students to help manage their finances while in school.
What is a student checking account?