Budgeting
What is a budget?
A budget is a way to track income and expenditures to ensure that you can afford the things you need and some of those you want.
Credit unions are
typically are not-for-profit banks that have been organized for a specific group of people
A Savings Account has
No risk, Low interest,Easily accessible
A number between 300 and 850 of credit
Credit Score
What is a fixed mortgage rate?
Interest rates don’t change, and the mortgage is typically issued for either
How do you handle spending?
By grouping everything on your list into categories: Food, Transportation, Entertainment, and Personal Care.
Financial Insitution is
an organization that channels savings to investors
Money Market Mutual Funds have
Minimal Risk, Higher interest, Longer deposit requirements
What are ways to grow your Credit Score?
Open an account in a bank or credit union and apply for a secured credit card (you’ll get to spend up to the amount you deposit),After a year, if you’ve paid off the balance, you can get your deposit back and switch your secured credit card to an unsecured one (not limited to the balance of your account), Get a job and keep it, Pay service providers (cell phone, Internet, electric company, etc.) on time
What is an Adjustable Rate Mortgage?
A Riskier Mortgage because the interest rates vary over time
What are categories in a savings budget?
Emergency fund, Housing, Medical Expenses, Insurance, Vacation
A Direct Deposit Account (DDA) is
checking account; which allows customers the easiest access to their money for daily and monthly use
What does a Money Market Deposit have?
No risk,Higher interest,Deposit Requirements
What does APR Mean?
Annual Percent Rate
What is a Mortgage?
a loan undertaken for the purchase of a home
What is the 50-30-20 rule?
50% of your money toward needs, 30% toward wants, and 20% toward savings.
A Collateral is
something of value the borrower has and can give to the lender of he or she cannot repay the loan
A Certificate of Deposit (CD) includes
No risk Higher interest Longer, higher deposit requirements
What is an interest rate?
the amount you are charged for doing so – shown as a percentage of the total amount of the loan.
A security deposit is
a set amount of money paid up front goes toward any repairs for damages you might cause. If you cause no damage, you get your deposit back.
What is a Good Amount for an Emergency Fund
A Creditor is
decide whether to lend you money and how much interest to charge by looking at three this
What is a mutual fund?
a pool of money from many people invested together in a variety of stocks and bonds
What is a down payment?
Usually ranges from 3% to 20% of the home’s purchase price; a larger down payment can reduce monthly payments.
When borrowing money what are the three most important things to take into account?