Budgeting
What is a budget?
A way to take control of your money.
A way to balance income, expenses, and financial goals.
When choosing a bank the ultimate goal should be what?
Ultimately that the bank fits your money needs.
Which type of card allows you to buy something now and pay for it later?
Credit Card
What is Net Pay?
Amount that you take home after deductions.
What is a credit score?
The number used to determine your risk level.
Why is budgeting important?
Helps understand the relationship between you and your money
Save for the Future
Get and Stay our of Debt
Relieve Stress
Which type of account allows you to put money in an account and not touch it for a period of time while gaining interest on the money that was put in that account?
Certified Deposit
Name the 4 advantages of a debit card that was discussed in the notes.
Convenience
Cost-Effective
Budgeting
Security
What is a Variable Expense?
A bill or expenses that changes in price.
A credit score of 672 would fall under which category when talking about your credit score?
Good
What 3 things should you do to start a budget?
Track expenses
Review account balances and debts
Which bank matches the description below?
These banks have the widest of accounts and loans along with high-quality mobile apps and websites.
National Banks
The amount of money you pay back to the bank for the loan you are given is known as what?
Interest
What is a Fixed Expense
Bill or expenses that do not change in price.
What is the most widely used credit score model in North America?
FICO
According to the notes making a budget is not about _______ but it is about taking control of your money.
Depriving you of your money.
Money Market Account
Name 3 disadvantages of using a debit card.
Fees
Exchange Rates
Fraud Protection
Rewards
Acceptance
What is the meaning of ARP when talking about a credit card?
Annual Percentage Rate
According to the notes your credit can influence what 4 categories?
Renting an apartment
Student Loans
Car Payments
Job Applications
Name one of the 4 types of budgets that was discussed in the notes.
50/30/20 Budget
Envelope System Budget
Zero-Based Budget
Pay-Yourself First Budget
Which bank matches the description below?
These are financial technology companies but not banks themselves. Instead they partner with banks to offer internet-based banking accounts with federal deposits insurance.
Neobanks
When a Credit Card institution raises your interest rate if you make a late payment or exceed your credit limit this is known as what?
Penalty Rates
What is a credit report?
A collection of data from all of your creditors reflecting the extent of your credit and payment history.
Name the 5 categories that are used to calculate your credit score?
Payment History
Capacity
Length of Credit
New Credit
Mix of Credit