Budgeting Basics
The is a plan for how you will spend your money
Budget
This three-digit number tells lenders how risky it is to lend you money.
A Credit Score
This type of bank account is used to store money while earning a small amount of interest.
This is the money you earn from a job before taxes are taken out.
Gross income
Before buying something, you should ask yourself, "Do I need this or just ____ it?"
Want
This common budgeting rule suggests dividing your income into 50% needs, 30% wants, and 20% savings.
The 50/30/20 rule
Paying with a card and money comes directly out of your account.
Debit
This is money set aside for unexpected expenses or emergencies.
Emergency Fund
Payments made by individuals or corporations to the government based off of their income.
Income Tax
Looking at different prices before buying something is called
Comparison Shopping
Rent is a cost that remains stagnant. That is to say it is a...
Fixed expense
You should use this card for simple everyday spending in order to not overspend.
Debit
This investment option involves buying partial ownership in a company.
Stock
Since I don't have any bills to pay for right now at a young age, I should do this with the majority of the money I earn.
Save
Buying something quickly without thinking.
Impulse buying
If your income is $2,000/month and your expenses are $2,300, this is your financial situation.
A deficit (or overspending)
If you pay back your credit card on time and don't borrow too much too fast, your credit score will...?
Go up
This savings account is used for long term saving and yields higher interest when compared to a typical savings account.
A high yield savings account
This bank account is a way to save money for later in life. It includes many tax advantages as well.
A retirement account
In any given situation, I should only spend as much as I can...?
Afford
Money you set aside for things later down the line.
Savings
When you pay with a credit card you are actually ____-ing money from the bank.
Borrowing
Compound Interest
Money that you earn without having to consistently work for it (i.e. investments) is this type of income.
Passive Income
If I have $20, but a new video game costs $60, I should do what?
Save up