Saving Smarts
This is the term for the practice of putting away part of your allowance or earnings from a job for future use.
What is saving money?
This term refers to a desire or aspiration that can change depending on circumstances, such as the choice between dining out or cooking at home
What are variable wants?
This number typically ranges from 300 to 850 and is used by lenders to assess creditworthiness.
What is a credit score?
Making payments on time is crucial for maintaining a good credit score; failure to do so may lead to this negative mark on your credit report.
What is a late payment?
Many careers require this document that outlines an individual’s education, work experience, skills, and achievements.
What is a resume?
This type of account where you can store your money earns interest and is often used for short-term savings.
What is a savings account?
This type of expense remains the same every month, such as rent or mortgage payments.
What is a fixed need?
This type of account negatively impacts your credit score if closed, as it reduces the average age of your accounts
What is a credit card account?
This is a piece of information on your credit report that shows how long your accounts have been active, affecting your credit score positively if managed well.
What is length of credit history?
This term refers to the series of jobs and experiences that a person has throughout their professional life.
What is a career path?
A common goal for high school students, this type of fund is meant to cover unexpected expenses like car repairs or medical bills.
What is an emergency fund?
Food and entertainment costs are examples of these types of expenses, which can vary from month to month.
What are variable needs?
When you apply for credit, this type of inquiry can lower your score temporarily, as it signifies you're seeking more credit.
What is a hard inquiry
This is the process of reviewing your credit report for accuracy and checking for fraudulent activities.
What is credit monitoring?
This is the legal document or qualification that an individual receives after passing a standardized test, often required for certain professions.
What is a certification or license?
This term refers to the additional cost of borrowing money or the cost associated with not saving money, often expressed as a percentage.
What is interest?
A budgeting strategy that allocates 50% of income towards these types of expenses is known as the '50/30/20 rule
What are Fixed Needs?
Carrying a balance on credit cards can negatively impact this aspect of your credit score, which is essential for credit utilization.
What is credit utilization?
Borrowing more than you can afford to repay or continually making only the minimum payment on credit cards can lead to this financial issue.
what is debt?
This is a document that summarizes your professional skills, experiences, and accomplishments to potential employers.
What is a cover letter?
For students earning money from part-time jobs, this type of tax is automatically deducted from their paychecks and may contribute to future benefits like Social Security.
What is income tax?
A car lease that has a fixed monthly payment for a set term is an example of this type of want, providing structured financial planning
What is a fixed want
This financial principle suggests that you should save at least 20% of your income for financial goals, including retirement and emergencies.
What is the 50/30/20 rule?
This practice involves using credit to build a positive payment history, typically by taking out small loans or credit cards and paying them off regularly.
What is credit building?
This process involves assessing personal interests, values, and skills to determine potential career options, often utilizing tools such as personality tests or interest inventories.
What is self-assessment?