Budgeting
A plan for how you spend and save your money
What is a budget?
A number that represents how trustworthy you are with borrowing money
What is a credit score?
A bank account used to store money and earn interest over time
What is a savings account?
The act of using money with the goal of it growing over time
What is investing?
An essential expense required for living, like food or housing
What is a need?
The money you earn from a job or other sources
What is income?
The consequences of missing a credit card payment
What are late fees and a credit score drop?
Money set aside specifically for unexpected expenses
What is an emergency fund?
Ownership in a company that can increase or decrease in value
What is a stock?
The practice of checking multiple prices before making a purchase
What is comparison shopping?
An expense that stays the same each month, such as rent
What is a fixed expense?
The factor that is typically the most important in determining your credit score
What is payment history?
Money earned from keeping your money in a bank account or paid when borrowing
What is interest?
A loan made to a company or government that pays you back with interest
What is a bond?
Recurring charges that continue automatically unless cancelled
What are subscription services?
An expense that changes from month to month, such as groceries
What is a variable expense?
The time you have to pay your credit card balance before interest is charged
What is a grace period?
A bank account that typically earns more interest than a regular savings account, but may limit how often you can withdraw money
What is a high-yield savings account?
The strategy of spending your money across different investments to reduce risk
What is diversification?
A purchase without planning or thinking it through
What is an impulse purchase?
When your expenses are greater than your income, this is what your budget is experiencing
What is a deficit?
The yearly cost of borrowing money expressed as a percentage
What is APR(Annual Percentage Rate)
The maximum amount of money the government insures per depositor, per bank, in the U.S.
What is $250,000?
Earning money not only on your original investment but also on the interest it gains
What is compound interest?
The idea of considering what you give up when you choose to spend money on one thing instead of another
What is opportunity cost?