Budgeting Basics
The term for a plan that tracks your income and expenses
What is a budget?
The safest place to store your money for emergencies
What is a savings account?
The term for borrowing money that you agree to pay back later, often with interest
What is credit?
The term for the money you earn before taxes are taken out.
What is gross income?
What is the term for assets that can easily be turned into cash?
What is liquidity?
The percentage of your income is typically recommended to save each month
What is 20%?
The term for the money you earn on your investments, such as interest or dividends
What is a return?
The maximum amount you’re allowed to borrow on a credit card
What is a credit limit?
The form that tells employers how much money to withhold from your paycheck for taxes.
What is a W-4 form?
What is the term for money you earn on your savings account?
What is interest?
What does the 50/30/20 rule refer to in budgeting?
What is 50% for needs, 30% for wants, and 20% for savings?
“Diversification” in investing
What is spreading investments across different asset types to reduce risk?
This three-digit number determines your creditworthiness.
What is a credit score?
The federal income tax form that most people use to file their taxes.
What is Form 1040?
What is the term for the money you owe, like loans or credit card balances?
What is debt?
What is that called if you spend more money than you earn?
What is a deficit?
This type of retirement account allows your money to grow tax-free and be withdrawn tax-free in retirement
What is a Roth IRA?
The term for paying only the minimum amount due on a credit card instead of the full balance.
What is a minimum payment?
The tax you pay on goods and services.
What is sales tax?
What is the term for when a company shares its profits with shareholders?
What is a dividend?
Name one app commonly used for budgeting
What is Mint, YNAB (You Need A Budget), or PocketGuard?
The stock market index that tracks the performance of 500 of the largest U.S. companies
What is the S&P 500?
APR stands for this.
What is Annual Percentage Rate?
The term for the process of reducing your taxable income through deductions and credits.
What is tax optimization?
What is the term for the gradual loss of purchasing power due to rising prices?
What is inflation?