Money Moves
You can reduce __ by managing your money
Financial stress and anxiety
You should avoid __ purchases
impulse
Emergency fund
What is credit?
Borrowing now and paying back later
50/30/20
What happens when you spend less than you earn?
You save money and pay off debt.
Household activity that can reduce expense
Cooking meals at home
A habit that helps build savings automatically
Automatic transfers
What usually comes with credit?
Interest
First step in creating a budget?
Calculate monthly net income
A future goal that savings can help with
Home
Retirement
Family
Three ways to reduce unnecessary expenses
Cook meals at home, cancel unused subscriptions, use discounts and sales, avoid impulse purchases
Primary purpose of an emergency fund
To avoid unexpected costs
Credit allows you to purchase goods, buy __, and fund ___
homes; businesses
Two major types of expenses needed to calculate your monthly net income
Fixed and variable
Two benefits of effective money management
It is recommended to review your spending habits on a __ or __ basis
Weekly, monthly
Savings should be treated like a __
mandatory bill
Credit card balances should be paid in full on a __ basis
monthly
Name 2 steps necessary for building a budget
Balance income with expenses, categorize essentials with non-essentials, set spending limits, include savings category, and review and adjust regularly
This financial danger occurs when a person repeatedly borrows money and struggles to repay it.
Debt trap
What shoppers use to stay disciplined and within budget
How many months of living expenses should an emergency fund cover?
3-6 months
__ is foundational to credit
How to calculate MNI
Income - Total Expenses (fixed + variable)