Budgeting
This is the term for a financial plan that helps you track income and expenses.
What is a budget?
This is the most common type of bank account used for daily transactions.
What is a checking account?
This is the term for the total amount you owe on all loans and credit.
What is debit?
This is a number that represents your trustworthiness to a bank/loaner.
What is a credit score?
This is term for money you earn from working.
What is income
This rule suggests divide your income into 50% needs, 30% wants, and 20% savings
What is the 50/30/20 rule?
This type of bank operates entirely online without physical branches.
What is an online bank?
This is the cost of borrowing money, usually expressed as a percentage.
What is interest?
This is one of the biggest factors that affects your credit score, based on your past expenses.
What is payment history?
This is the term for a tax-deferred retirement savings account offered by employers.
What is a 401(k)?
This percentage of your income is commonly recommended to be saved.
What is 20%?
This is the term for the interest a bank pays you for keeping money in a savings account.
What is APY (Annual Percentage Yield)?
This is the term for the total cost of borrowing, including interest and fees, expressed as a yearly rate
What is APR (Annual Percentage Rate)?
Borrowing money from a friend and paying back more than you borrowed
What is interest?
This is the term for the amount of money left after taxes and deductions.
What is net income?
This is what you call money set aside for future purchases or emergencies.
What is savings?
This type of account earns more interest but penalizes you for early withdrawals.
What is a certificate of deposit (CD)?
This is the term for borrowing money repeatedly up to a limit, like with a credit card
What is revolving credit?
A credit score of this number or higher is considered excellent.
What is 740?
This is the term for the amount of money you have left after paying all of your expenses.
What is disposable income?
This is the term for money set aside for unexpected costs.
What is an emergency fund?
This federal agency insurers deposits in U.S. banks up to $250,000
What is the FDIC?
This is what happens when you don't repay a loan on time, hurting your credit and costing you more in the long-run.
What is defaulting on a loan?
This is the term for checking your own credit report without affecting your score
What is a soft inquiry?
The term for something that loses value over time.
What is disposable income?