Budgeting
Money you earn from a job or business.
income
The largest factor affecting your credit score.
What is payment history
When you buy a stock, you own part of this.
a company
An account used for everyday purchases with a debit card
What is a checking account
Money you earn before taxes are taken out
What is gross income
if assets = $50,000 and liabilities = $32,000, this equals $18,000
owner’s equity (net worth)
APR stands for this.
Annual Percentage Rate
Money earned from an investment is called this
What is a return
An account that earns interest over time
What is a savings account
Money you take home after taxes
What is net income
Cash flow is divided into operating, investing, and this third category
financing activities
A three-digit number that shows how responsible you are with borrowing money.
What is a credit score
Spreading your money across different investments lowers this
risk
This protects your bank deposits up to $250,000
What is FDIC insurance
Money returned to you if you paid too much in taxes.
What is a tax refund
If a company’s current assets are $40,000 and current liabilities are $20,000, this ratio equals 2.0
current ratio
The total amount you are allowed to borrow on a credit card.
What is a credit limit?
Keeping money invested for a long time helps it grow because of this
What is compound interest
When the Federal Reserve raises interest rates, borrowing usually does this
What is decrease
A retirement account that allows your money to grow tax-free and be withdrawn tax-free in retirement if rules are followed
What is a Roth IRA
A positive net income but negative cash flow could indicate this issue
poor cash management or high receivables
Using too much of your credit limit hurts this.
What is your credit score
A bond is basically this type of agreement
What is a loan
The Federal Reserve controls this to manage inflation
What are interest rates
Money taken out of your paycheck for Social Security and Medicare is called this tax.
What is FICA