Debt
What is debt?
Money that is borrowed and must be paid back.
What is credit?
The ability to borrow money or access goods and services with the understanding that you'll pay later.
What does budgeting mean?
Planning how to spend your money.
What is a loan?
Money that is borrowed and must be paid back with interest.
What is the primary purpose of a bank?
To hold and manage money for individuals and businesses.
Name one type of debt that most people have
Credit card debt, student loans, or mortgage.
What is a credit score?
A number that represents your creditworthiness.
Why is it important to save money?
To prepare for emergencies and future goals.
What is interest?
The cost of borrowing money, usually a percentage of the loan amount.
What is a checking account?
A bank account that allows you to deposit and withdraw money easily.
What happens if you don’t pay your debt on time?
You may incur late fees and your credit score could decrease
Name one factor that can affect your credit score.
Payment history, amount owed, length of credit history, or new credit inquiries.
What is an expense?
Money spent on goods or services.
Name one type of loan.
Personal loan, mortgage, or student loan.
What is an ATM?
Automated Teller Machine, used to withdraw cash or check account balances.
What is a good way to manage debt?
Create a budget and make regular payments.
Why is a good credit score important?
It helps you get loans at better interest rate and can get you approved for almost anything you want.
How can you track your spending?
By using a spending log or budgeting app.
What is a loan term?
The length of time you have to repay the loan.
What are the benefits of using a bank?
Safety for your money, access to loans, and earning interest on savings.
What is the difference between secured and unsecured debt?
Secured debt is backed by collateral; unsecured debt is not.
What is a credit report?
A detailed report of your credit history.
What is a savings account?
A bank account where you can save money and earn interest.
Why might someone take out a loan?
To buy a house, pay for college, buy a car, start a business, or cover unexpected expenses.
What is online banking?
Managing your bank accounts and transactions through the internet.