Budgeting & Saving
50% needs
30% wants
20% savings
This Acronym describes the amount an investment earns annually, including compound interest
APY (Annual Percentage Yield)
This three digit number affects your ability to rent, buy cars, and get loans
Credit score
A retirement account often offered by employers
A 401(k)
This government form determines how much tax is withheld from your paycheck
A W-4
A savings account specifically for unexpected expenses
An Emergency Fund
This type of fund allows you to invest in many companies at once
A mutual fund or ETF
This report lists your credit history, accounts, and payment behavior
A credit report
This type of stock pays shareholders a portion of the company’s profits
A dividend stock
This type of debt, often from credit cards, should usually be paid off first
High-interest debt
The recommended size of an emergency fund is this many months of living expenses
3-6 months
This is the average annual return the stock market has provided historically over the long run
about 7-10%
GThis ratio compares your total credit card balances to your total credit limits and impacts your credit score
Credit utilization ratio
What does S&P 500 stand for
Standard & Poor‘s 500
The best way to avoid interest on your credit card is to do this
Pay balance in full each month
This kind of savings account earns higher interest and limits withdrawals
A money market account
The rule of 72 estimates this
How long it takes to double your money
This is the total yearly cost of a loan or credit card, including the interest rate and any associated fees
APR
The marketplace where new stocks are sold to the public for the first time
The primary market (IPO)
Financial experts often recommend saving at least this percentage of your income for retirement
10-15%
What is a time-locked savings account with higher interest
A certificate of deposit (CD)
What is the term for spreading investments across different asset classes to reduce risk
Diversification
This type of credit card requires a deposit upfront and is often used to build or repair credit
A secured credit card
What is a bull market
A market with rising stock prices
This type of savings account allows you to put aside pre-tax money for qualified medical expenses
A health savings account (HSA)