Credit
720
A savings account designed specifically for educational expenses
What is a 529 Savings Account
Standard division of income per month.
What is the 50-30-20 rule?
The amount of money you receive before taxes
What is gross pay?
This may happen when a homeowner does not pay their mortgage
What is foreclosure?
An analysis made by a lender when deciding whether or not to lend money to a consumer.
What is creditworthiness?
The percentage of your pay that traditionally is placed in savings.
electric bill, food, rent
What are needs?
With holdings from your gross pay that you choose
What are voluntary deductions?
A sum of money that is borrowed and expected to be paid back with interest
What is a loan?
A numerical product of the factors of credit
What is credit score?
Savings certificate issued by a bank or credit union
What is a Certificate of Deposit (CD)?
New clothes, movie ticket, candy bar
What are wants?
Take home pay
What is net income?
An initial payment made when something is bought on credit.
What is a down payment?
A higher credit score indicates low levels of this
What is risk?
CDs, Savings Accounts, Money Market Accounts risk level
What is low risk?
Ending a budgeting period with more money than was allotted for wants and needs
What is fiscally responsible?
Medicare, Social Security, Federal Tax
What are required payroll deduction/ mandatory deductions?
A percentage of the loan total that is added when a loan has a balance.
What is an interest rate?
This strategy is used to remove debt, by ordering the debts from lowest to largest and then paying off the lowest with $200 plus the minimum payment
What is debt snowball?
An account such as an IRA and 401(k)
What is a retirement account?
The amount of money to have in an emergency fund
What is 2-6 months worth of needs?
Reflects all taxable wages you received during the calendar year and all taxes withheld from those wages.
What is a W-2 Form?
The amount of time stipulated for repayment of a loan