Budgeting
This is a planning tool that shows income and expenses.
What is a budget?
This account typically earns interest and is used for saving money.
What is a savings account?
This is a "buy now, pay later" card that allows you to borrow money for daily purchases
What is a credit card?
Money a student earns by working, usually part of financial aid.
What is work-study?
A process that allows a borrower to combine multiple loans into one.
What is loan consolidation?
Money you earn after taxes are taken out.
What is net income?
A card that deducts money directly from your checking account.
What is a debit card?
Something valuable that the lender can take as payment if you can't or don't repay your secured loan
What is collateral?
Financial aid that does not have to be repaid.
What is a grant or scholarship?
The upfront money paid to the bank when getting a car loan.
What is a down payment?
spending nearly all your income on essential expenses (rent, food, bills) with no money left for savings, investing, or emergencies.
What is living paycheck to paycheck?
Type of account is mostly used for day-to-day transactions like paying bills or making purchases.
What is a checking account?
This type of credit card feature charges extra when the balance isn’t paid in full.
What is interest?
This form must be completed to determine federal student aid eligibility.
What is the FAFSA?
A monthly document prepared by your financial institution that shows all of the transactions related to your account
What is a bank statement?
The budgeting strategy involves putting cash into a physical envelopes labeled for specific categories like "groceries."
What is the envelope method?
A fee charged when your account has insufficient funds for a transaction.
What is an overdraft fee?
A loan often used for higher education that typically has lower interest than other loans.
What is a student loan?
Federal student loans that do NOT accrue interest while a student is still enrolled in school at least half-time.
What are subsidized federal student loans?
The rate at which the price of goods increases and consumer purchasing power decreases over time
What is inflation?
A type of budgeting method that assigns every dollar a job (e.g., savings, spending).
What is zero-based budgeting?
The process of depositing your monthly paycheck into your account is automatic.
What is direct deposit?
The cost of borrowing expressed as a yearly percentage rate.
What is APR or Annual Percentage Rate?
Long-term failure to repay a loan according to
the agreed terms.
What is default?
The paying off of debt over time in equal installments; part of each payment goes toward the loan principal while the other part goes toward interest
What is amortization?