Budgeting Basics
A plan that outlines expected income and expenses over a specific period.
What is a Budget?
A numerical representation of a person's creditworthiness based on credit history.
What is a Credit Score?
An automatic deposit that goes into your checking account. Typically from an employer.
What is Direct Deposit?
An economic system based on customs, traditions, and barter.
What is a Traditional Economy?
Collateral, Character, Capacity
What are the Three C's of credit worthiness?
Income that is left over after all expenses have been paid
What is Disposable Income?
In the formula A= P + I
The original amount of money borrowed before interest.
What is the Principal?
A bank account that earns interest on money you don't expect to spend in the short-term.
An economic system where the government makes all economic decisions.
What is a Command Economy?
A loan where your car or home is often put up as collateral
What is a title loan?
Income before Taxes are taken out
What is Gross Income?
What is Delinquent?
Income after taxes have been removed from your check
What is Net Income?
An economic system where supply and demand determine prices and production.
What is a Market Economy?
A type of loan that is taken out of your paycheck
What is a Payday Loan?
Insurance you are usually required to have when renting an apartment
What is Renter's Insurance?
When the Bank takes your home and evicts you as collateral for missing payments on a loan?
What is Foreclosure?
Guarantees up to $250,000 worth of your deposits is guaranteed to be refundable by the bank.
What is FDIC? (Federal Deposit Insurance Commission)
An economic system combining elements of both capitalism and socialism.
What is a Mixed Economy?
Student loans that do not charge interest while you are still in school.
What are subsidized loans?
Range of FICO credit scores.
What is 300-850?
A non-profit organization that processes financial transactions similar to that of a bank.
What is a Credit Union?
Determines what you pay for Social Security and Medicare
What is FICA? (Federal Insurance Contributions Act)
Karl Marx wrote a Manifesto that supported common equality in his financial system.
What is Communism?
"The More you Make the More They Take"
What is the Progressive Tax System?