Needs vs wants
Clothing is apart of this spending category
What’s is a need?
A financial roadmap that lists your planned income and expenses.
What is a budget?
The term for all the money coming into your account such as your paycheck
What is income?
Needs are under what %
What is 50%
The amount you were paid before taxes
What is gross pay?
A phone is part of this spending category
What’s is a need?
The 50/30/20 rule breaks your income into needs, wants, and this.
What is Savings?
Obligations you pay monthly that do not change in price
What is a fixed expense?
Wants are under what %
What is 30%
If you spend MORE money than you earn, you have a budget
what is a defect?
A new TV is a part of its category
what’s is a want?
A bank account that is best for everyday spending, deposits, and frequent withdrawals
What is a checking account?
saving strategy where you prioritize putting a portion of your paycheck into savings as soon as you get it
what is “Pay Yourself First”?
Buying expensive clothing falls under what %
In addition to rent, you should budget for
Going out is a part of this category
What is a want?
A three-digit number that lenders use to evaluate your creditworthiness and history.
What is a credit score?
Budget format where your income minus your expense savings and giving equals exactly 0
What is zero based budgeting?
What is the 50/30/20
What is Needs, Wants, and Savings.
When deciding where to live, it’s a good idea to look at an area’s
What is cost of living?
Health is apart of this category
What is a need?
The most effective way to avoid interest charges and late fees on a credit card.
What is paying the balance in full every month?
Money set aside specifically to cover unexpected costs, like a medical bill.
What is an Emergency Fund?
Putting money into a 401(k) qualifies for this portion of the budget
What is 20%
If you apply to rent an apartment and are approved, you will sign a
What is Residential lease?