Home Sweet Home!
This document outlines the rules, rent amount, and responsibilities between a tenant and landlord.
Lease Agreement
These are the two biggest factors that affect your credit score.
Payment History and Amount Owed
Experts recommend saving at least this many months' worth of living expenses in an emergency fund.
3-6 months
This individual retirement account allows you to contribute after-tax money and offers tax-free qualified withdrawals, and it’s not employer-sponsored.
Roth IRA
Expenses that vary month to month, like groceries or utilities, are called what?
Variable Expenses
Financial experts recommend that your monthly rent should not exceed this percentage of your gross monthly income.
30%
If you miss a credit card payment, your credit score will drop within the next few days. True or False.
False
This type of savings account offers a higher interest rate than a regular savings account, helping your emergency fund grow faster while staying accessible.
High-Yield Savings Account
This is the profit earned from selling an investment for more than you paid.
Capital Gain
When budgeting, the pay yourself first strategy means setting aside money for this fund before paying any bills or expenses.
Emergency Fund
You're looking to move into an apartment that costs $1,200 a month. To move in, your landlord requires a first and last months rent, a $350 security deposit, a $50 application, and a $100 refundable holding fee to hold the unit, returned upon lease signage. How much will it cost to move in?
$2800
For someone with no credit history, this type of credit card backed by a cash deposit helps build credit safely.
Secured Credit Card
Compared to an investment account, a savings account allows you to access your money quickly and without loss. This advantage is referred to by what financial term?
Liquidity
This type of fund pools money from many investors to buy a diversified portfolio of stocks and bonds.
Mutual Fund
This budgeting rule suggests allocating 50% of your income to needs, 30% to wants, and 20% to savings.
50/30/20 Rule
This percentage compares your monthly debt payments to your gross income and helps lenders decide if you qualify for a mortgage.
Debt-To-Income (DTI) Ratio
This ratio measures the amount you owe compared to your total available credit and affects your credit score
Debt-To-Credit Ratio
People who prioritize keeping their emergency funds safe and easily accessible rather than investing in higher-risk options are considered this in their financial behavior.
Risk Adverse
You can withdraw up to this amount from your Roth IRA penalty-free to buy your first home.
$10,000
This common budgeting mistake happens when someone continues spending money on a project or purchase simply because they’ve already invested time or money, even if it’s no longer worth it.
Sunk-Cost Fallacy
This type of loan allows a buyer to take over the seller’s existing mortgage under the same terms.
Assumable Loan
This three-digit number, developed by Fair Isaac Corporation, is used by over 90% of top lenders to evaluate credit risk for loans, credit cards, and mortgages.
FICO Score
This U.S. government agency insures deposits up to $250,000 to protect your emergency savings in banks.
Federal Deposit Insurance Corporation (FDIC)
This type of investment allows you to invest in real estate without owning property directly, often paying dividends from rental income.
Similar to a budget sheet and income statement, this document shows the difference between your income and expenses over a specific period, helping you monitor financial health.
Cash Flow Statement