Creating Your Budget
Mortgage/Rent, Food, Clothing
What are Needs?
Protects you up to $250,000.
What is FDIC?
The frequency someone receives bank statements for their checking and/or savings accounts.
What is monthly?
You put all your money into different categories after check paycheck so that your remaining balance is zero.
What is zero based budgeting?
The form you fill out to verify your identity and work status/citizenship. You fill it out when you first start a job.
What is an I-9?
A new cell phone, concert tickets, PS5
What are wants?
This type of bank offers low fees and higher interest rates (on savings accounts).
What is a credit union?
3-6 months of salary.
What is an emergency savings account?
When you get your paycheck, you put money into your savings right away before paying any bills and expenses.
What is Pay Yourself First (PYF)?
Tells employers how much taxes will be taken out of your paycheck.
What is a W-4?
Hourly Wage x Total Hours worked - Taxes.
What is net pay?
The term where your paycheck is sent electronically to your bank account.
What is Direct Deposit?
Pays higher interest rates on deposits.
What are online savings accounts?
Needs, Wants, Savings.
What is the 50/30/20 method?
Mandatory government spending items taken out of your paycheck.
What is social security and medicare?
Rent, car payment, student loan payment are all this kind of expense.
What is a fixed expense
This happens when you spend more money than is in your account.
What is overdraft?
When you use this card, it takes money directly out of your paycheck.
What is a debit card?
What is the envelope method?
April 15th.
What day are taxes due?
Rule of thumb (%) when budgeting for a home down payment.
What is 20%?
The name of the insurance that protects those that bank with a credit union.
What is the National Credit Union Administration (NCUA)?
Savings vehicle in which your money is locked in for a period of time. Offers slightly higher interest rates for your money.
What is a Certificate of Deposit (CD)?
A trip to the ER, a car accident.
What is a WHAMMY expense?
Education, Healthcare, Military are some examples of this type of expense.
What is discretionary spending?