Expenses
The cost of goods and services you buy
Expense
What is an item of value that someone owns?
What is an asset?
Any form of money you recieve
Income
What type of spending method is best for people who overspend?
Cash
Is the maximum amount a user can spend on a credit card.
Credit Limit
Cost that changes in the amount or time it must be paid
Variable Expense
Something that a person or company owes.
Liability
Income remaining after deduction of taxes and other mandatory charges
Disposable Income
A card that can be used in place of cash to make purchases.
Debit Card
A way of measuring the full cost a lender charges you per year to borrow money. It is an acronym.
Annual Percentage Rate
Set cost that must be paid each budget period
Fixed expense
The understanding of the basic knowledge & skills needed to manage your financial resources.
Financial Literacy
The pay earned before payroll deductions.
Gross Income
A card that can be used to borrow money to make purchases.
Credit Card
This is the quickest way to build credit card debt.
Making only minimum payments or missing payments
Give three examples of necessary variable expenses.
Gas, groceries, electricity, water
The total wealth of an individual, company or household taking account all financial assets and liabilities.
Net Worth
The pay earned after payroll deductions.
Net Income
The easiest type of transaction to cancel in the case of fraud.
Credit Card
John gets a loan for $10,000 to buy a new car. He will pay 3% interest for 5 years. How much interest will he pay?
$10,000 x .03 x 5 =$1,500
Expense adjusted based on needs and revenue after all bills have been paid
Discretionary Expense
What is the formula for Net Worth?
Total Assets - Total Liabilities = Net Worth
Give an example of deductions taken out of a paycheck to get from your gross to your net income.
Gross Income-
Tax -
401K/ Retirement=
Net Income
The charge for the privilege of borrowing money.
Interest
This saying is the key to using credit cards responsibly.
Pay in full, on time.