Budgeting Basics
What is the term for a plan that outlines your income and expenses?
What is a budget?
What does “interest” in relation to a savings account?
What is money earned for keeping your funds in the bank?
What is a credit score?
What is a number that shows how reliable you are at paying back money?
What does “comparison shopping” mean?
What is checking prices at different stores before buying?
What is the amount of money you make before taxes called?
What is gross income?
If you earn $500 in a month and spend $400, how much is left over?
What is $100?
Name one difference between a savings account and a checking account.
What is savings earns interest and checking is used for daily spending?
Name one way to build good credit.
What is paying bills on time?
What is a need versus a want? Give one example of each.
What is a need: food; want: designer shoes?
What is the term for the government’s cut of your paycheck?
What is taxes?
What is the term for money set aside for unexpected expenses?
What is an emergency fund?
What does the acronym “CD” stand for in banking?
What is a certificate of deposit?
What is the term for the extra money you pay when you borrow money from a lender?
What is interest?
What is the “unit price” on a grocery shelf tag?
What is the cost per ounce, pound, or item to compare value?
What does ATM stand for?
What is Automated Teller Machine?
List two fixed expenses and two variable expenses.
What are fixed: rent, car payment; variable: groceries, entertainment?
In investing, what is diversification?
What is spreading money across different types of investments to reduce risk?
What’s one major downside of only paying the minimum on a credit card balance?
What is paying more interest and staying in debt longer?
What’s the term for money you lose in value due to buying something that wears out quickly?
What is depreciation?
What’s the term for the amount you pay for insurance before the insurance company starts to pay
What is a deductible?
What is the recommended percentage of your income you should save each month?
What is at least 20%?
If you invest $100 and earn 5% interest annually, how much will you have after one year?
I= PxRxT
What is $105?
What’s the difference between a secured and unsecured loan?
What is a secured loan is backed by collateral, unsecured is not?
What does the phrase “opportunity cost” mean?
What is what you give up when you choose one option over another?
What is the term for when your paycheck is directly deposited into your bank account
What is direct deposit?