Credit
A predictor of your credit behavior
What is a credit score?
A general investment account
What is a brokerage account?
This tracks your income and expenses
What is a budget?
Acronym for Debt to Income ratio
What is DTI?
This account holds cash and has a debit card attached but earns no interest
Checking account
This tracks the payments you've made over time and if they're on time or not
What is payment history
This type of account allows you to invest for retirement
What is a retirement account?
These are monthly expenses that never change (mortgage, rent, car note etc)
What is fixed expenses?
To increase in value over time
What is appreciate?
This account Holds cash but earns interest and usually has no card attached
What is a savings account?
True or false: paying the minimum is the best way to pay down credit card debt
False
When should you start investing?
After you have an adequate savings and have net monthly discretionary money left over
These expenses can change monthly (eating out, shopping, groceries etc)
What is flexible expenses?
To decrease in value over time
What is depreciate?
This type of savings account usually earns more interest than a normal savings
What is a high yield savings account?
True or false: No credit is better than bad credit
False! You want to have a credit history
Freebee: One thing you've learned today
Any answer
This budgeting rule breaks your money into 50% needs, 30% wants, and 20% savings/investments
What is the 50/30/20 rule?
To use something to maximum advantage. Can also be suing debt to amplify returns from an investment/project
What is leverage
What are 3 things you should start working on now to build a solid financial foundation?
Savings, credit, knowledge
What is considered a very good credit score range?
740-799
800-850 is excellent
This allows you to own a portion of a company and sell on the stock exchange
What is a stock?
You should have 3-6 months of expenses saved here
What is an emergency fund?
The state of being responsible for something
What is a liability
Who should know your ATM pin?
Nobody!