How to Budget
Tracking your expenses
What is budgeting?
You need to keep this organized when budgeting.
What is bills / expenses?
Protection against possible financial loss
What is insurance?
Insurance that covers damage to your vehicle when it is involved in an accident
What is collision coverage?
What is the best way to improve your credit score?
What is make payments on time?
What is one way to file your taxes?
What is on paper, online, through a tax professional.
What are the 2 key things you need to create a budget?
What is Net income minus Expenses?
You need to differentiate between these when you are budgeting.
What is wants vs needs?
A legal responsibility for the financial cost of another person's lossess of injuries
What is liability?
Coverage that provides protection for your belongings and any accidents that occur in your residence
What is renters insurance?
Name 2 factors that play into your credit score.
What is your payment history, your total debt, usage of available credit, length of credit history, credit mix and new credit?
The government bureau that is responsible for processing your tax returns
What is the IRS (internal revenue service)?
Give an example of a Fixed Expense
What is
Rent, Student Loan, Car payment, insurance, etc.?
Name one method to use to pay off debt
What is
1. Snowball method
2. High interest (Avalanche) method ?
A fee paid for insurance (typically monthly)
What is a premium?
A form of financial protection that eases the financial burden people may experience as a result of illness or injury
What is health insurance?
Is having too many credit cards a good or bad thing?
What is Having multiple credit cards can help increase your credit score and earn you even more rewards, but only if you're able to make your payments on time and in full every month. Opening more than one credit card can be risky for those who are subject to spiraling into debt.
I am due by April 15th
You can fill me out using Turbo Tax or you can do it yourself
I report your salary, wages, taxable interest, any investments and any other income
What is a 1040, tax return
Give an example of a Variable Expense
What is
Water bill, Electric bill, Grocery bill, "Wants" ?
Name 1 reason why you should create a budget.
What is
1.Stops overspending 2.Helps reach your goals
3.Makes it easier to save 4.Puts you in control
5.allows you to be flexible with your spending
The set amount that the policyholder must pay per loss on an insurance policy
What is a deductible?
Insurance that covers you and your family members if you are involved in an accident with an uninsured or hit-and-run driver
What is uninsured motorist's coverage?
Why is it important to have good credit?
What is good credit can be the make-or-break detail that determines whether you get a mortgage, car loan or student loan. Bad credit, on the other hand, will make it difficult to get a credit card with a low interest rate and more expensive to borrow money for any purpose.
You will receive me by your employer
You need me in order to file your taxes
What is a W-2
You need to do this with savings so that you don't put too much or not enough money in the bank when you are budgeting.
What is pay yourself first
Name 1 method of Budgeting
50/30/20
Zero Based Budget
Envelope Budget
This type of car insurance covers weather events and things like a deer hitting your car.
What is comprehensive coverage?
A federally funded health insurance program available mainly to people over 65 and to people with certain disabilities
What is medicare?
What credit score do you start with?
What is a blank slate, the lowest score?
If you are a minor and make over $12,750 do you still need to file your taxes?
Yes!