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What is a plan for managing income and expenses over a certain period called?
Budget
What is the term for the maximum amount of credit a financial institution extends to a client on a credit card?
Credit Limit
This type of account typically pays interest on the money you deposit
Savings Account
What is the total income earned before any deductions or taxes?
Gross Income
Name two ways you can be a victim of fraud.
Fraud is a deliberate deception intended to secure unfair or unlawful gain.
Unsecured passwords, sharing sensitive information, using Venmo with people you don't know, and using unreliable websites.
What is something that is borrowed; a sum of money that is expected to be paid back, with interest?
Loan
What is the term for the person or business who is lending you money?
Creditor
What is the fee called when you spend more money than you have in your bank account?
Overdraft fee
This type of loan is used to purchase a home
Mortgage
This card type of card will not help you build credit
Debit Card
A card issued by a bank, that allows the holder to transfer money electronically from their bank account when making a purchase is called what?
Debit Card
(Not to be confused with a credit card)
1.) What do you call a financial institution that accepts deposits from the public?
2.) What is the US government agency that insures deposits in US banks and savings associations in case of bank failure?
1.) Bank
2.) The Federal Deposit Insurance Corporation (FDIC)
What is a card used to make purchases with the agreement that the cardholder will pay back the card issuer for the purchases and any fees and interest?
Credit Card
What is the income remaining after all deductions, such as taxes and retirement contributions, have been taken out.
Net Income
What does it mean to have a balanced budget?
Your income is greater than or equal to your expenses.
What is the term for money that is received in exchange for work or investments?
Income
1.) What is the credit score range? What would be considered a good credit score?
2.) List three things that impact your credit score.
1.) 300-850
2A.) Paying on time
2B.) Using different types of credit- Installment and Revolving and length of credit history
2C.) Amounts owed on each existing account
Credit scores help lenders assess credit health and determine interest rates and loan terms. Borrowers with higher scores are generally considered lower risk and are offered better interest rates.
What is money that is saved for unexpected expenses?
Emergency Fund
What is the term for expenses that vary from month to month?
Variable Expenses
Entertainment, personal care, shopping, utilities, and car repairs
What do you call the money charged for the privilege of borrowing money?
Interest
The 50/30/20 budgeting rule divides your income into what three categories?
50% Needs
30% Wants
20% Savings
What is the term for the interest rate that's charged on a loan each year?
APR (Annual Percentage Rate)
1.) How can you avoid paying interest charges on your credit card?
2.) What is the term for the time between the end of a billing cycle and the due date of a payment?
1.) Paying your bill in full by the due date. Remember- anything you charge on a credit card is a loan from that bank. If you pay the minimum payment rather than the full balance, they will charge you interest on the remaining balance.
2.) A credit card grace period is the time between the end of a billing cycle and the due date of a payment. During this time, you can avoid interest charges on most purchases if you pay your balance in full. Remember- anything you charge on a credit card is a loan from that bank. If you pay the minimum payment rather than the full balance, they will charge you interest on the remaining balance.
What 3 things do you need to consider when creating a budget?
1) Income- how much you earn each month
2) Expenses- what do you need to pay each month (rent/mortgage, car payment, student loan, utilities, phone, etc)
3) Needs vs. Wants
What is the term for costs that remain the same from month to month?
Fixed Expenses- They are usually predictable and are often paid on the same day each month.
Mortgage, Rent, Phone and Internet bills