Budgeting
A plan showing how you expect to earn, spend, and save your money.
What is a budget?
Money that you choose not to spend now so it can be used later.
What are savings?
Using money today with the goal of increasing its value in the future.
What is investing?
This three-digit number shows how reliably a person has handled borrowed money.
What is a credit score?
Something involving money that a person plans and works toward achieving.
What is a financial goal?
Money received from a job, allowance, business, or another source.
What is income?
Money a financial institution may pay you for keeping your money in an account.
What is interest?
Buying one of these gives you partial ownership in a company.
What is a stock?
This card allows you to borrow money from a lender to make purchases and pay it back later.
What is a credit card?
Saving for something you plan to purchase in the near future is this type of goal.
What is a short-term goal?
Rent and car payments are examples of this type of expense because they usually stay the same each month.
What is a fixed expense?
This type of account is commonly used to safely hold money while earning interest.
What is a High Yield Savings Account?
The possibility that an investment could lose value.
What is risk?
This is the extra money a borrower pays a lender for the privilege of borrowing money.
What is interest?
Saving for something several years in the future, such as college or a house, is this type of goal.
What is a long-term goal?
Groceries, entertainment, and gasoline are examples of this type of expense because the amount may change each month.
What is a variable expense?
Money set aside specifically for unexpected events such as a car repair or an unexpected large expense.
What is an emergency fund?
Spreading your money across different types of investments instead of putting everything in one place.
What is diversification?
This percentage represents the yearly cost of borrowing money on a credit card or loan.
What is APR, or Annual Percentage Rate?
In this type of goal-setting method, the goal should be Specific, Measurable, Achievable, Relevant, and Time-based.
What is a SMART goal?
When expenses are greater than income, a person's budget is in this condition.
What is a deficit?
This occurs when you earn interest on both your original savings and the interest you previously earned.
What is compound interest?
The idea that investments with the possibility of larger gains usually also have a greater possibility of loss.
What is risk versus reward?
Making payments on time, keeping credit card balances low, and avoiding too many new accounts can help improve this.
What is a credit score?
This strategy means putting money toward savings or financial goals before spending money on unnecessary wants.
What is paying yourself first?