Understanding Money
This is what people use to buy goods and services like food, clothes, and toys.
What is money?
The first step in setting up a simple budget is identifying this source of money coming in.
What is income?
Money saved for unexpected situations like medical bills or car repairs is called this.
What is an emergency fund?
This application determines eligibility for federal financial aid for college.
What is FAFSA?
This term refers to borrowed money that must be repaid, usually with interest.
What is credit?
What is cash?
In budgeting, tracking where your money goes helps prevent this common financial problem.
What is overspending?
This type of bank account is commonly used to store money long-term and allows your money to grow by earning interest.
What is a savings account?
This type of financial aid does not need to be repaid and is often based on financial need.
What is a grant?
Someone with a credit score of 820 would fall into this credit category.
What is Excellent credit?
This type of payment uses money directly from your bank account.
What is a debit card?
The final step in the budgeting process involves modifying spending habits after reviewing income and expenses.
What is adjusting the budget?
This habit involves regularly setting aside a portion of your money each time you receive income instead of spending it all.
What is saving regularly?
The original amount of money borrowed before interest is added.
What is the principal?
This credit score factor refers to paying bills on time and is one of the most important parts of your score.
What is payment history?
This type of payment allows you to buy something now using borrowed money that must be repaid later, usually with interest.
What is credit?
After listing your income and expenses and tracking your spending, this final step helps you improve your budget if you are spending too much.
What is adjusting your budget?
Reviewing this monthly financial document helps monitor spending and account activity.
What is a bank statement?
This abbreviation represents the total yearly cost of borrowing money, including interest and fees.
What is APR (Annual Percentage Rate)?
This factor of a credit score refers to how much of your available credit limit you are currently using.
What is credit utilization?
Before money existed, people exchanged goods using this system.
What is bartering?
A budget that consistently shows expenses greater than income leads to this financial situation.
What is debt?
Name the one saving strategy named in the presentation
What is the 50/30/20 rule?
This type of federal student loan has interest paid by the government while the student is in school.
What is a subsidized loan?
This credit score range is considered “Good” and typically qualifies borrowers for better interest rates.
What is 670–739?