Budgeting Basics
What is the first step in creating a budget?
What is tracking your income and expenses?
What is stock?
What is a share of ownership in a company?
What is the minimum payment on a credit card?
What is the smallest amount you must pay each month to avoid late fees?
What is "net worth"?
What is the total value of your assets minus your liabilities?
At what age can you start receiving Social Security benefits in the U.S.?
What is 62?
What is the 50/30/20 rule for budgeting?
What is 50% needs, 30% wants, and 20% savings/debt repayment?
What is diversification in investing?
What is spreading investments across various assets to reduce risk?
What does "APR" stand for in finance?
What is Annual Percentage Rate?
What is a "401(k)"?
What is an employer-sponsored retirement plan that allows employees to save and invest for retirement?
What is the typical first step for an individual saving for retirement?
What is contributing to a 401(k) or an IRA?
What is a "fixed expense" in a budget?
What is an expense that remains the same each month (e.g., rent, utilities)?
What does "compound interest" mean?
What is earning interest on both the principal and the accumulated interest?
What is the difference between secured and unsecured debt?
What is secured debt backed by collateral, while unsecured debt is not?
What is "inflation"?
What is the rate at which the general level of prices for goods and services rises over time?
At what age should you ideally start building an emergency fund?
What is as early as possible, ideally in your 20s?
What is an emergency fund, and how much should it be?
What is savings set aside for unexpected expenses, typically 3-6 months of living expenses?
What is a mutual fund?
What is an investment that pools money from many investors to buy stocks, bonds, or other assets?
What is the "debt snowball" method?
What is a debt repayment strategy where you pay off the smallest debt first, then move on to the next smallest, and so on?
What is a "bear market"?
What is a market in which prices are falling, or are expected to fall?
What is the recommended amount to save for a down payment on a house?
What is 20% of the home’s purchase price?
What is "zero-based budgeting"?
What is a method where every dollar of income is assigned to a specific expense or savings category?
What is a "Roth IRA"?
What is an individual retirement account where contributions are made after-tax, and withdrawals are tax-free in retirement?
What is a credit score, and what range is considered "good"?
What is a numerical representation of your creditworthiness, and a score of 700 or above is generally considered good?
What is "liquidity" in financial terms?
What is how quickly and easily an asset can be converted into cash without losing value?
What is the term for retiring without debt and living off your savings or investments?
What is financial independence or FIRE (Financial Independence, Retire Early)?