Credit
What is Credit card?
What is a small, hard, plastic card that is issued by a credit card company and you need to pay the money back that you borrow.
What are needs and wants?
What is a need is something you need to survive (exp:food) and a want is something that you want but you don't need to live (exp: new clothes)
What are fixed expenses?
What is a recurring cost that remain the cost each month.
True or False: Income is money that you make from a job, gifts, or investments
What is True.
What is Investing?
What is understanding how to grow wealth through stocks, bonds, and other vehicles.
In order to be credit worthy you first have to get a __________
What is a bank account
What are savings?
What is savings is money that is set aside that you don't spend right away so you can use it for future emergencies.
What is a budget?
What is a plan for managing your money and it's based off your estimation of your income+ expenses.
What is Gross Income?
What is total money earned before taxes or deductions.
What is Financial Planning?
What is planning for long-term needs like retirement.
How to obtain credit?
What is opening a secured credit card with a cash deposit, or ask a trusted family member to add you as an authorized user on their account.
What is loans?
What is loans are money you borrow from someone; you are expected to pay it back and have to pay interest
What are the 3 types of budgets?
What is annual, monthly and weekly budget
What is Net income?
What is money remaining after taxes and deductions.
True or False: Budgeting is creating and adhering to a budget to track income and expenses.
What is True
What is Credit score?
What is a credit score is a 3-digit number (typically 300–850) that acts as a "financial report card," telling lenders how risky it is to lend you money.
What does the terms S.M.A.R.T stand for?
What is S= specific M=measurable A= achievable R= relevant T= time bound.
True or False: Once a budget is created, it should remain fixed and not be changed throughout the year?
What is False.
What is Discretionary Income?
What is the money you have left over to spend, save, or invest after paying for all your necessary living expenses like rent and food.
True or False: Saving is setting aside money for emergencies and future goals.
What is True
What are the 5 C's in credit?
What is Character, Capacity, Capital, Collateral, and Conditions.
What has to be on a check in order for it to be valid?
What is date, payee (person you are writing to), the check dollar amount, change, your signature, and account number.
What is the 50/30/20 rule
What is 50% of income goes to needs, 30% to wants, and 20% to savings and debt.
What are the 4 income catagories?
What is earned, passive, portfolio, and business income.
What is Financial Literacy?
What is the ability to understand and effectively apply various financial skills, including budgeting, saving, investing, and debt management.