Personal Finance 101
A financial plan that allocates future income toward expenses, savings, and debt repayment.
What is a Budget?
This is something you want to accomplish soon.
What is Short Term Goal
Something that you want to accomplish in the future and requires time and planning.
What is Long Term Goal
The amount of money that you can borrow from a bank or lender.
What is Credit
The money received regularly for work or through investments.
What is Income
This is an expense that may be higher or lower from one month to the next.
What is a Variable Expense?
This is the value of all your assets. You must subtract your liabilities.
What is Net Worth
These banks collect deposits from the public and lend the deposits for the purpose of agriculture, industry and more.
What is Local Banks
How much of your available credit that you are using.
What is Credit Utilization
This is the total amount of income that has been made by a person or company without taxes and deductions.
What is Gross Income
Financial objectives that will take a year or more to complete.
What are Long-Term Goals?
This compares the money you owe to the money you earn.
What is Debt-to-Income-Ratio
The amount of money you generate from an investment.
What is Yield
This is the increase in prices of goods and services in the economy.
What is Inflation
Banks that allow users to make financial transactions through the internet.
What is Internet Banks
A period of economic decline in which trade and industrial activity are reduced.
What is Recession
These are things that the bank owes to someone else.
What is Liabilities
This is borrowed money that is used to increase potential returns and the risks of an investment.
What is Other People Money (OPM)
An account that has interest that you can open at banks and credit unions.
What Is Money Market Account (ACC)
What is Five C's of Credit
A company that provides data to clients throughout the world.
What is Experian
The interest on a loan or asset that is not immediately paid and is added to yout debt.
What is Capitalized Interest
This stands for the Federal Deposit Insurance Corporation and was created to keep the public's confidence in the nation's financial system.
What is FDIC
This is someone's credit score that is calculated with software form the Fair Isaac Corporation.
What is FICO Score