Budgeting & Saving
This is a plan for how your money comes in, goes out, and what is left over
What is a budget?
Credit means you borrow money now and do this later
What is pay it back?
This is the chance that something unexpected could happen and cost you money
What is risk?
Saving is mainly for safety, while investing is mainly for this.
What is growth?
When comparing job offers, you should look beyond hourly wage and consider pay, benefits, schedule, and stability. This full picture is called this
What is total compensation?
In the 50/30/20 rule, 50% of your money should go toward this category
What are needs?
This three-digit number helps lenders decide how risky it is to lend you money.
What is a credit score?
This is the regular payment you make to keep insurance active
What is a premium?
This happens when your investment returns begin earning returns of their own over time
What is compounding?
This housing guideline says your total housing costs should generally stay around 30% or less of your gross monthly income.
What is the 30% rule?
This budgeting method gives every dollar a job so there is $0 left unassigned
What is zero-based budgeting?
This is the biggest factor in your credit score and is based on whether you pay on time
What is payment history?
This is the amount you pay first before insurance starts helping with costs.
What is a deductible?
This means spreading your money across different investments so one bad investment does not ruin everything
What is diversification?
Many landlords want your monthly income to be at least this many times the rent.
What is 3 times the rent?
This savings strategy means saving before spending instead of saving whatever is left over.
What is pay yourself first?
APR stands for this and shows the yearly cost of borrowing, including interest and fees.
What is Annual Percentage Rate?
Insurance works because many people pay into a shared fund, and the fund helps the few people who have losses.
What is pooling risk?
This retirement account is usually offered by an employer and may include an employer match.
What is a 401(k)?
A message says, “Your account is locked. Click this link now and enter your password.” The safest move is to avoid the link and do this instead.
What is verify through the official website or app?
These expenses do not happen every month, but they are still expected, such as holiday gifts, car registration, or back-to-school supplies.
What are irregular-but-predictable expenses?
A lender says, “No credit check, guaranteed approval, sign today.” This is an example of this type of lending warning sign.
What is predatory lending?
A policy has a $1,000 deductible and 30% coinsurance. If the medical bill is $5,000, you pay the first $1,000 plus 30% of the remaining $4,000. Your total cost is this amount
What is $2,200?
Two people both invest $48,000 total. One starts at 25, and one starts at 45. The person who starts earlier usually ends with more money because of this.
What is more time for compounding/time in the market?
This is the simple rule for avoiding scams: slow down, verify the source, and protect your personal information.
What is pause, check, protect?