Needs vs Wants
Whats the definition of a need.
things that you need to stay healthy and survive.
What is debit?
debit is money that you put in instead of borrowing from the bank.
What is 50 stand for in the 50/30/20 rule.
needs
An account that is a safe place to store your money and earn interest.
savings and cd
Whats the definition of a want.
something that you don't need but you want it a lot.
What is credit?
Credit is the money a lender allows you to borrow.
What does 30 stand for in the 50/30/20 rule.
wants
Name 2 ways to saving in the bank?
Savings account, CD
example of a want.
toys, expensive clothes,
Can you use a debit card to pay of your loan?
yes
What does 20 stand for in the 50/30/20 rule.
savings
example of a need.
house, not name brand clothes, shoes, food.
Can you use a credit card to pay of your loan?
No
something you can save for.
Emergency fund, retirement, college
the difference between debit card and credit card.
A debit takes money from your checking account at the time of purchase. A credit card lets you borrow money to a set limit to be paid back later.
What does your credit score start at?
0
How is 50/30/20 divided
50% of your income on your needs, 30% on your wants, and 20% on your savings.