Budgeting Basics
This is a plan for how you'll spend and save your money each month.
What is a Budget?
This is the safest place to keep your money to avoid loss or theft.
What is a bank/credit union?
This three-digit number shows how trustworthy you are with borrowing money.
What is a credit score?
Money you earn from working.
What is income?
This document shows how much money you earned and how much was taken out for taxes.
What is a pay stub?
These expenses stay the same every month-like rent or a phone bill.
What are fixed expenses?
A bank pays you this extra money for keeping your money in a savings account.
What is interest?
The extra money you pay when borrowing, usually expressed as a percentage.
What is interest?
The total amount you make before taxes are deducted.
What is gross income?
Money the government collects to pay for public services.
What are taxes?
The 50/30/20 rule suggests putting 20% of your income towards this.
What is savings?
This account is best for daily transactions like debit card purchases.
What is a checking account?
This type of loan is used to purchase a home.
What is a mortgage?
This term describes how much something is worth compared to another item.
What is value?
The tax form you fill out every year to determine your refund or payment.
What is a Tax Return?
Money spent on things like dining out or entertainment is called this.
What is discretionary expenses?
Money set aside for emergencies, usually 3-6 months of expenses.
What is an emergency fund?
Too much of this type of debt, often from high-interest cards, can hurt your credit.
What is credit card debt?
A plan for long-term money growth, often using stocks or bonds.
What is investing?
These taxes fund retirement and disability benefits for workers
What are Social Security Taxes?
This term refers to the money left after you subtract expenses from income.
What is net income/disposable income?
The rate at which your money grows in a savings account, expressed as a percentage.
What is the interest rate/APY?
This report shows details of your borrowing history and repayment patterns.
What is a credit report?
The increase in value of an investment over time.
What is appreciation?
This is the money you take home after taxes and deductions.
What is net pay?