Budgeting
Is a budget flexible?
Yes
What is saving?
Setting money set aside for future use and not spent immediately
What is a fixed expense?
Costs that stay the same every month, like rent or subscription services.
What is the importance of investing?
Investing allows your money to grow faster than it would in a savings account, helping you build wealth and achieve long-term financial goals.
What is credit?
Credit in finance refers to the ability to borrow money or access goods and services with the obligation to repay the borrowed amount in the future, typically with interest.
What is a Variable Expense?
Costs that can change from month to month, such as groceries, entertainment, or clothes shopping.
Name three types of investments.
Stocks, Bonds, Mutual Funds, Real Estate
Factors that influence Credit?
Creditworthiness
Credit Types (revolving, installment, open)
Credit scores, and credit reporting.
What does a positive budget variance indicate?
The actual spent was lower than the budgeted amount. This is a positive sign of financial performance.
How can you reduce the risk of your investments?
Diversification
Name 2 Types of Credit
Revolving Credit, Installment Credit, Open Credit
What does Estimated - Actual give you?
Budget Variance
What is the rule for savings, shaped like a pizza pie?
50 - Needs
30 - Wants
20 - Savings