Budgeting
What is a budget
A budget is a plan for managing money
What is a savings account?
A savings account is a bank account where you deposit money to earn interest.
what is a stock?
A stock represents ownership in a company.
what is a credit card?
A card that allows you to borrow money from the bank
what is interest?
Interest is the cost of borrowing money
Name one benefit of creating a budget
It helps you control your spending and save money
Name one benefit of having an emergency fund?
It provides financial security.
what is a bond?
A bond is a loan made to a company or government
what is a credit score?
your credit score represents your likelihood to pay a debt back
what is a asset
Anything of value that you own
What is the difference between fixed and variable expenses?
Fixed expenses remain the same every month. Variable expenses can change.
Whats the difference between a savings account and a current account?
savings account is for saving money. current account is used for everyday transactions.
What is the stock market
A stock market is a platform where stocks are brought and sold
Name one factor that effects your credit score?
Payment history
what is liability
anything that takes money out your pocket
How can tracking your spending help with budgeting?
It helps to identify areas where you can cut costs and save more.
How does compound interest work?
Interest is earned on the initial principal and accumulates over time
What is diversification in investing?
it means to spread your investments across various assets to reduce risk
What's the difference between secured and insecurity
A secured load is backed by collateral unsecured is not
what is net worth
net worth is how much is the total value of your assets
What is the 50/30/20 rule in budgeting?
50% for needs/30% for wants/20% for debt or savings.
What is a high yield savings account?
Offers higher interest rates.
Whats the difference between a mutual fund and EFT?
A mutual fund is managed
What is a credit report
A credit report is a detailed record of your credit history
Define Compound interest
compound interest is interest calculated on the initial principle.