Budgeting Basics
A plan for managing money
What is a budget?
This type of account is buy now, pay now
What is a checking account?
What is a credit score?
What is a numerical representation of a person's creditworthiness/trust?
Why is it important to differentiate between needs and wants when managing money?
What is to make informed money decisions, smart budgeting, and minimise impulse buying?
What protects a person from financial loss or damages?
What is Insurance?
Utility bills, gas, and food are this type of expense
What are variable expenses?
The reasoning behind using Black/Blue pens when signing a check
What is fraud prevention and computers correctly scanning check?
What is a debit card?
What is a card where money is subtracted immediately from your bank account?
What does PYF stand for?
What is Pay Yourself First?
The amount paid for an insurance policy, usually monthly, by the policyholder
What is a premium?
Give a way to avoid impulse buying
What is make shopping lists, ignore advertising, head down, don't shopped stressed/hungry
Why is it important to have money in your savings account?
What is to have funds for emergencies and/or future goals?
What are some consequences of having a low credit score?
What are higher interest rates, difficulty getting loans, or rejection of rental applications?
Give an example of a short-term financial goal.
What is purchasing anything that would take 3 months to 1 year to save up for (ie. saving $100 for a new video game, Clothes, Jewelry, Shoes)?
Money paid out of pocket before insurance covers the remaining costs
What is a deductible
Give me an example of a Fixed Expense
What is rent/mortgage, insurance, or subscriptions?
What does "interest" mean?
What is a fee received or paid for the use of money?
Name two ways to improve your credit score.
What is paying bills on time and in full, not missing payments, reducing money owed, length of credit, or multiple lines of credit?
What is an emergency fund, and why is it important?
What is money set aside for unexpected expenses, providing financial security?
The possibility of financial loss or physical harm
What is Risk?
What is the first step in creating a budget?
What is determining your income and expenses?
"What is a high-yield savings account?"
What is a type of savings account that typically offers a higher interest rate compared to traditional savings accounts, allowing individuals to earn more on their deposited funds?
What does APR stand for in the context of credit cards?
What is an Annual Percentage Rate?
What is the difference between GMI and NMI?
What is NMI = GMI - Deductions? Net monthly Income vs Gross Monthly Income
Why do 16 year old males pay more than 16 year old females on average for Auto Insurance?
What is they are statistically more likely to get into an accident, according to metrics?