Budgeting Basics
This 3-digit number determines how trustworthy you are with borrowing money.
What is a credit score?
The extra percentage added to the price of borrowing money.
What is interest?
This is money you save for unexpected expenses like medical or car issues.
What is an emergency fund?
This category includes housing, food, transportation.
What are needs?
Before buying something you should compare this between brands.
What is price?
This type of cost stays the same every month (like phone bill).
What is a fixed expense?
This 3-digit number determines how trustworthy you are with borrowing money.
What is a credit score?
When you invest, you take on some level of this.
What is risk?
Coffee shop drinks & DoorDash mainly fall into this category.
What are wants?
This insurance protects your stuff in an apartment or dorm.
What is renter’s insurance?
This type of cost changes each month (like food or gas).
What is a variable expense?
Something valuable, like a house or a car, that a lender can take if a loan isn't paid back
What is collateral?
A place to invest long-term money to grow wealth over years.
What is the stock market?
This phrase means comparing the value of spending $10 now or saving for a bigger goal later.
What is opportunity cost?
The best way to avoid debt is to spend ______
What is less than you make?
This is the first bill you should pay every month — even before rent.
What is paying yourself first / savings?
This type of credit allows you to borrow up to a certain limit and reuse the available credit as you pay it off.
What is revolving credit?
Putting money in more than one thing so you’re safer.
What is diversification?
A personal subscription you forgot about is an example of this kind of spending.
What is wasteful / unnecessary spending?
Financial planners recommend setting aside this many months' worth of expenses in an emergency fund.
What is three to six months' worth of expenses?
Most people overspend here because they don’t track small daily purchases.
What is discretionary spending?
This organization, along with Experian and Equifax, is one of the three major credit reporting bureaus
Who is TransUnion?
Money that grows because it earns interest on top of interest.
What is compound interest?
The fundamental economic problem that necessitates making choices between needs and wants.
What is scarcity?
A late payment can remain on your credit history for this many years, even after it's paid off.
What is seven years?