Budgeting
A money management plan
What is a budget?
A number representing the risk associated with lending an individual money
What is a credit score?
Money that is owed to another party or entity
What is debt?
The things you must have to live and be healthy
What are needs?
The cost of borrowing money that is disclosed when opening a new line of credit
What is interest?
Money borrowed from a financial institution or another person for varying purposes
What is a loan?
Money that is earned through various means (i.e., allowance, gifts, jobs)
What is income?
The amount of time you have to pay your bill in full before being charged interest
What is a grace period?
A common issue that arises with the use of a credit card as opposed to paying with cash
What is overspending?
It is recommended that 20% of an individual's budget should be allocated to this category
What are savings?
The percentage of available credit that is used
What is credit utilization?
Typically 3 to 6 months of living expenses saved up
What is an emergency fund?
It is recommended that 20% of an individual's budget should be allocated to this category
What are savings?
The standardized format used to display key terms and conditions of a credit card
What is a Schumer Box?
What happens when someone stops paying on a loan and the lender charges it off as a loss
What is default(ing)?