Budget
What is a plan for how you will spend and save your money called?
What is a budget?
Money set aside for future use is called this.
What is savings?
This three-digit number tells lenders how likely you are to repay loans.
What is a credit score?
Comparing prices before buying an item is called this.
What is comparison shopping?
A financial goal should be SMART — name what SMART stands for.
What is Specific, Measurable, Achievable, Relevant, Time-bound?
This term refers to money you receive, like from a job or allowance.
What is income?
This is the interest you earn on both your original money and the interest already earned.
What is compound interest?
Borrowed money that you must pay back with interest is called this.
What is debt?
This type of purchase happens suddenly without planning.
What is an impulse purchase?
Saving for a vacation next year is an example of this type of goal.
What is a short-term goal?
Fixed and variable are two types of these monthly expenses.
What are expenses?
A savings account, stock, or bond are examples of these.
What are investments?
Paying only the minimum amount due on a credit card each month leads to more of this.
What is interest (or debt)?
Needs are things you must have to live. Wants are things that are ______.
What is optional (or “nice to have”)?
Setting money aside for emergencies helps with this aspect of financial wellness.
What is financial security?
If your expenses are greater than your income, you have this.
What is a budget deficit (or overspending)?
This account helps you save for retirement, often with tax benefits.
What is an IRA or 401(k)?
This type of loan is used to buy a house.
What is a mortgage?
Buying something just because it's on sale can still lead to this.
What is overspending?
The average recommendation for an emergency fund is enough to cover how many months of expenses?
What is 3–6 months?
The 50/30/20 rule suggests 50% needs, 30% wants, and 20% for this.
What is savings or debt repayment?
The higher the potential return on an investment, the higher the ______.
What is the risk?
One way to build credit is to pay this on time every month.
What are bills (or credit card balances)?
Tracking your spending helps you understand where your money is going and prevents this.
What is financial stress (or debt)?
This document lists what you own, what you owe, and your net worth.
What is a personal balance sheet (or financial statement)?