Budget Basics
This percentage of your income should go to needs according to the 50/30/20 rule
50%
This card immediately withdraws money from your account
Debit Card
A person who buys goods or services
Consumer
School supplies fall under this budget category
What are needs
The typical APR range for credit cards is between this percentage
21.47% - 22.7522.75%
Systematic errors in thinking that affect financial decisions
What is cognitive bias
If your monthly income is 500 Using the 50/30/20 rule, you should save this amount
100
This type of APR doesn't change over time
Fixed APR
Following what others or trends do with their money is an example of this bias
Bandwagon Effect
This type of purchase would include designer clothes or luxury items
Wants
Best payment method for daily purchases
Debit Card
The best time to use a credit card
Emergency Situations
The complete amount you should allocate to needs from monthly income of 500
250
The main benefit of using a credit card responsibly
Building Credit (history)
This fund should be part of your savings category for unexpected expenses
An emergency fund