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Vocab
Spending Plans
(Budget)
Expenses
Personal Finance
Personal Finance x2
100

It helps you track your income and expenses, allowing you to make informed decisions about where to allocate your funds

What is a spending plan (budget)?

100
This is something every spending plan should have.
What are goals?
100
Examples of this type of expense include mortgage/rent, insurance, real estate taxes, and vehicle registration.
What are fixed expenses?
100

The best time to start saving for retirement 

What is as soon as possible?

100

This is the best way to protect and improve your credit rating

What is pay your bills on time?

200

An account at a bank or credit union where you can deposit funds and earn a small amount of interest

What is a savings account?

200

This may include your paycheck, child support, alimony, investments etc

What is your source of income?

200
The easiest type of expenses to adjust.
What are flexible/variable expenses?
200

A type of savings account that pays a fixed interest rate on a lump sum deposit left in the account for a set period of time. Usually offers a higher interest rate then standard savings account

What is a Certificate of Deposit (CD)?

200

This is the best way reduce your credit card debt

What is pay more than the minimum amount required?

300

What's given when a lender grants a borrower money in exchange for later payment

What is loan?

300
The term used to describe the things you spend your money on.
What are expenses?
300
Using these reduce your grocery bill, which is one way to help lower your monthly flexible/variable expenses.
What are coupons?
300
When possible, it is better to buy a home rather then rent because purchasing real estate is considered an investment. As you pay off your mortgage you build this.
What is equity?
300

A card that requires a cash deposit to be made when opening the account. A good option for people who are trying to build credit

What is a secured credit card?

400

A retirement savings plan that allows employees to contribute a portion of their wages to an individual account

What is a 401k?

400
One of two types of expenses.
What are fixed or flexible (variable) expenses?
400
Examples of this type of expense include groceries, wireless telephone, electric, heating oil/gas, and gasoline.
What flexible/variable expenses?
400

a debt repayment strategy where you pay off your debts from smallest to largest balance

What is the Snowball Method?

400

Process of replacing an existing loan with a new one that has more favorable terms. The goal of is to save money by getting a lower interest rate, a lower monthly payment, or a different type of loan

What is refinancing?

500

The additional money individuals must pay when borrowing money

What is interest?

500
Every spending plan should be this.
What is realistic?
500

This represents the amount of money left over after all bills have been paid

What is discretionary income?

500

A debt repayment strategy that involves paying off debts with the highest interest rates first. The goal is to pay less interest overall and potentially pay off debt faster

What is the Avalanche Method?

500

Calculate this by taking the total amount of money and assets you have and subtracting the total amount of money you owe.

What is Net worth?