Basics
This account is used for everyday spending
Checking Account
This card uses money directly from your bank account
Debit Card
What is a budget?
A plan for managing your money
A number that shows how reliable you are with money.
Credit Score
A $1,000 loan with 6% interest (1 year). Interest = ?
$60
This account is best for saving money and earning interest.
Savings Account
This card uses borrowed money you must repay
Money you earn from your job
Income/Salary
One thing that helps improve your credit score.
Paying off bills on time
$1,200 loan paid over 12 months. Monthly payment = ?
$100
Money paid to a bank for borrowing money
Interest
Spending more money than you have in your account
Overdraft
A Type of expense that stays the same each month
Fixed
One thing that can hurt your credit score.
Missing payments
Why do loans cost more than the amount borrowed.
Interest
The original amount of money borrowed
Principal
A fee you may get for overdrawing your account
Overdraft Fee
A type of expense that changes month to month.
Variable
It affects loans, interest rates, and approvals.
Credit Score
Interest that is usually shown as a yearly percentage.
Interest Rate
Money you must repay with interest over time.
Loan
One major difference between debit and credit cards
Debit uses your money, credit borrows money
A business has revenue of $85,000, expenses of $60,000, and then pays $5,000 in taxes. What is the company’s final profit?
$20,000
What happens if you only make minimum payments on a credit card.
You pay more interest over time
If you save $100 at 5% interest for 1 year, what is the interest earned?
$5