Budgeting Basics
The first step in creating a budget
What is tracking your income and expenses?
The range of a typical credit score is between this and this
What is 300 and 850?
This type of bank account is primarily used for everyday transactions
What is a checking account?
This is the minimum payment required by your credit card issuer each month
What is the minimum payment?
This term refers to stealing someone’s personal information to commit fraud
What is identity theft?
This type of expense remains the same every month
What is a fixed expense?
This factor makes up the largest percentage of your credit score
What is payment history?
This account type usually offers higher interest rates but limits monthly withdrawals
What is a savings account?
The snowball method suggests paying off debts from smallest to largest while making minimum payments on others
What is the debt snowball method?
A scam email that appears to be from a legitimate source but is designed to steal personal information
What is phishing?
The percentage of your income that should ideally go into savings each month
What is 20%?
A score above this number is generally considered excellent
What is 750?
This tax-advantaged account is used to save for retirement
What is an IRA (Individual Retirement Account)?
The term used for the total amount of debt you owe
What is principal?
It’s crucial to regularly monitor this to detect unauthorized transactions
What is your bank account/credit card statement?
The 50/30/20 rule of budgeting suggests that 50% of your income should go toward this
What are needs/essentials?
This type of inquiry occurs when a lender checks your credit for a loan or credit card application
What is a hard inquiry?
This account type is specifically for students to save and manage their money
What is a youth or student account?
This type of interest is calculated only on the initial principal, not on the accumulated interest
What is simple interest?
This type of fraud involves using a phone call to deceive people into providing sensitive information
What is vishing?
This budgeting method involves putting cash into envelopes for specific spending categories
What is the envelope system?
Paying off this type of debt will typically have the most significant positive impact on your credit score
What is revolving debt (credit card debt)?
This type of account combines a savings account's features with a checking account's flexibility
What is a money market account?
A loan consolidation involves combining multiple debts into one loan, usually with this type of interest rate
What is a lower interest rate?
Installing this type of software on your computer can help protect against malicious attacks
What is antivirus software?