Budgeting Basics
A plan for how you spend your money
What is a budget?
The money you take home after taxes
The money saved for unexpected expenses
What is an emergency fund?
The money borrowed to pay for school that must be repaid
What is a student loan
A number that shows how reliable you are with borrowing money
What is a credit score?
the 50/30/20 rule
What is 50% needs, 30% wants, 20% savings
The form that shows how much you earned and paid in taxes
What is a W-2?
The amount of months of expenses should an emergency fund cover
What is 3-6 months
The extra money charged on top of what you borrowed
What is interest?
This helps increase your credit score
What is paying bills on time?
If you make $2,000/month, the amount that should go to savings using 20%.
What is $400
one benefit you should look for besides salary?
What is Health insurance, 401(k), PTO (any acceptable answer)
What is a retirement savings plan through your job
What is a 401(k)?
This happens if you don't pay your student loans
What is your credit is damaged / loans go into default
This is a good credit score range
What is about 670-850