True or False
Paying off high-interest debt like credit cards is usually more financially beneficial than putting extra money into savings first.
What is true?
The ability to borrow money or obtain goods with he understanding that you will pay it back later.
What is credit?
A financial planning method where total monthly income minus expenses equals zero, meaning every dollar is assigned a specific purpose.
What is a zero-based budget?
The amount of money you must pay before the insurance company will step in and pay their portion.
What is a deductible?
The factor that impacts your credit score the most
What is payment history?
Knowing where your money goes is not important as long as you save a little of it.
What is false?
A bank account used for daily spending and easy access to funds.
What is a checking account?
In a 50/30/20 budget, 50% of income is dedicated to _____, 30% of income is dedicated to _____, and 20% of income is dedicated to _______.
What is "needs", "wants", and "savings"?
An amount of money we might pay to an insurance company on a monthly or an annual basis for the payment of that insurance.
What is a Premium?
A bank account that earns very low interest rates and is used for everyday spending with a debit card.
What is a checking account?
You should make sure to wait to start a retirement account until all of your debt is paid off.
What is false?
The original amount of money you borrow or invest
What is the Principal?
A financial plan in which your income for the month matches how much you spent/saved
What is a balanced budget?
Used to provide financial support in the event of your death to your dependents so their lives can continue, at least financially, after you are gone.
What is Life insurance?
Owning small pieces of many companies through one fund; a money pool.
What is a mutual fund?
Paying bills late affects your credit score.
What is true?
financial debts or obligation you owe, such as loans or credit card debt
What are liabilities?
This term refers to expenses that do not occur monthly, such as car insurance paid every 6 months or holiday shopping.
What are non-recurring/irregular expenses?
The most amount of money you will have to pay yourself in a policy year before the insurance company will pay 100%
What is an out-of-pocket maximum?
Generally considered good credit scores
What is 800 or higher?
A net worth calculation is the difference between what you own and what you owe.
What is true?
The spreading investments across different assets to reduce risk
What is Diversification?
When your total monthly expenses exceed your income, this is the term for the resulting financial situation.
What is a budget deficit (or negative cash flow)?
This term describes doctors and hospitals that have agrees to contracted rates with an insurer.
What is in-network?
In order to rent an apartment that costs $1,200 a month, this should be your minimum yearly income.
(give extra time for this but no calculator allowed)
What is $43,200?
(Rent should be no more than one third of income)