Finance Basics
These concepts define spending money on things that are necessary as opposed to things that are not.
What are wants and needs?
A plan for your money.
What is a budget?
These 3 variables are what is necessary to create a budget.
What is income, expenses, and time?
Credit that is used to make a big purchase.
What is a loan?
A lower interest rate (often 0%) that is used for a temporary period of time after a credit card is opened.
What is an introductory APR?
This is something that has high importance and can affect what I spend money on.
What are values?
Money that is not spend but set aside for later use.
What is savings?
The amount of money you earn.
What is income?
A grade on how well you manage money.
What is a credit score?
Any person or business that loans money.
What is a lender?
The choices that you make with your money regularly.
What is a money habit?
Items that we can expect to pay each month. The cost may vary slightly but is generally predictable.
What are fixed expenses?
Items that we pay for annually, quarterly, or at unexpected times.
What is a periodic expense?
Additional money that you pay in order to borrow money.
What is an interest rate?
A unique number assigned to you by a lender.
What is an account number?
3 questions to ask yourself before making a purchase.
What is do I need it, do I want it, and can I find it cheaper somewhere else?
The amount of money an employee earns before deductions are withheld.
What is gross pay?
Money you pay for services such as medical, vision or dental.
What are health benefits?
Money that is taken out of your paycheck before it is given to you.
What are deductions?
The amount of money an employee brings home after deductions have been removed.
What is net pay?
Anything that you spend money on.
What is an expense?
3 different types of assets you can invest in.
What are stocks, bonds, and real estate?
An additional fee you will be charged if you don't pay your bill by the due date.
What is a late fee?
The original amount of money you borrow that does not include interest.
What is the principal?
The amount of time between statements.
What is a billing cycle?