Credit
What is the main advantage of Credit Cards?
Credit Cards let you buy goods now, and then pay later.
What is the main advantage of Debit?
It allows for an immediate transfer of cash for goods.
What is the main purpose of an allowance?
To provide a set amount of cash to spend freely.
What is the term for a habit of spending more than you earn?
Borrowing.
What is a budget?
This is a detailed plan for how to acquire and spend money over a period of time.
What happens if you don’t pay afterwards when buying goods and services?
Like any other type of loan, if you don’t pay it back, you will have to pay interest as well as the bill itself.
Another term for a Debit Card?
What is the recommended amount of allowance per week for a 7th grader?
Between $7 and $12 a week.
What is the best way to avoid impulse purchases?
Create a detailed budget.
What is a deficit budget?
When your expenses are greater than your income, you are operating with this kind of budget.
What Is one specific advantage of credit?
The ability to carry small amounts of paper cash.
What is the term for a loan that requires no collateral?
When the lender relies solely on the creditworthines.
What is the best way to save a portion of your allowance?
Create a budget.
What is the term for a purchase that is necessary but not urgent?
A discretionary purchase.
What is percentage-based budgeting (or the 50/30/20 rule)?
This budgeting method allocates a specific percentage of income to categories like housing, food, and savings.
What is another advantage of credit?
You have more financial flexibility.
What is the term for a fee charged for using an out-of-network ATM?
A foreign fee or extraction fee.
What is the recommended amount to spend on entertainment each month?
5 to 10 percent of your monthly income.
What is the recommended amount to spend on entertainment each month?
5 to 10 percent of your monthly income.
What is zero-based budgeting?
Often seen in government or large organizations, this type of budget starts from scratch each period, requiring justification for every expense.
What is the definition of credit?
The amount of financial trust extended to a person or a business by a lender; a loan.
What is the name of the system that connects banks to enable debit card transactions?
ACH debit.
What is the name of the "50/30/20" rule for budgeting allowance?
50% for needs, 30% for wants, 20% for savings.
What is the name of the "30-day" rule for avoiding impulse purchases?
30-day savings rule.
What is the cash envelope system?
In personal finance, this "envelope" system involves setting aside physical cash for various spending categories.