Banking & Savings
What two main factors influence the APR you receive on a credit card?
Your credit score and credit history
What does a $30 copay mean for a $120 prescription?
You pay $30; insurance covers the rest
Where can you find the due date on a utility bill?
In the 50/30/20 rule, what does the 20% represent?
Savings and debt repayment
Why does a longer loan term cost more in interest?
Interest has more time to accumulate
Why might someone with a 650 credit score focus on paying off a maxed-out card?
To lower credit utilization and improve their score
Why might liability-only auto insurance be a bad financial decision?
It won’t cover your own car’s damage in an at-fault accident
What should you do if your energy bill spikes suddenly?
Check for leaks or faulty appliances
What does “pay yourself first” mean in budgeting?
Save money before paying for other expenses
How can you minimize total interest paid on a loan?
Choose the shortest term you can afford
What is one risk of applying for several credit cards in a short time?
Multiple hard inquiries can lower your credit score
What does "dwelling coverage" protect in homeowners insurance?
The physical structure of the home
What type of bill tracks electricity/gas usage monthly?
Utility bill
What is zero-based budgeting?
A type of budgeting where every single dollar has an assigned "job"
What might a landlord deny a lease for, despite a 720 credit score?
Unpaid collections (e.g., medical bills)
What does an amortization schedule show about a loan?
How each payment is split between principal and interest
What factors would increase homeowners insurance premiums?
Age of house, location, history of claims
What does "amount due" on a bill represent?
The payment required by the due date
Which budgeting method forces you to justify every expense?
Zero-based budgeting
What is a Schumer Box?
A table showing key credit card terms like APR and fees
Why is a secured loan at 8% APR smarter than a 400% APR payday loan?
Lower APR saves money, and defaulting risks only the collateral
What is a disadvantage of an HMO compared to a PPO?
Less flexibility to see specialists without referrals
Why is tracking monthly usage important for utilities?
To spot changes in consumption or potential problems
How does the 50/30/20 rule categorize "wants"?
30% of income
Why might a neighbor’s mortgage payment be higher for the same home?
Shorter loan term = higher monthly payments