Credit Score
What is debt?
what is money that you owe to someone that must be paid back; having a lot can lower your credit score
What is a salary?
what is a fixed, regular payment from an employer to an employee
What does saving money mean?
what is the process of setting aside a portion of current income
What is interest?
what is the extra money you pay to a lender above the original amount borrowed for the privilege of using their money
What is a financial plan?
what is a roadmap for your money that helps you reach your goals
What is credit?
what is the ability to borrow money and repaying it later
What is net income?
what is the total remaining income after taxes and deductions
What happens if you don't save money?
what is leads to extreme financial vulnerability, making you susceptible to debt, stress, and crisis when emergencies occur
What are interest rates?
what is the cost of borrowing money or the reward for saving it expressed as a percentage
What is financial responsibility?
what is means to live within your means and keep track of everything for the future to reach financial short-term and long-term goals.
What is a credit card?
what is a card that allows you to borrow money from banks and other places that must be paid back on time or else your credit score will be negatively affected
What is gross income?
what is the total income before taxes and deductions
Why is it important to save money?
what is establishes financial security, allowing you to handle unexpected emergencies without relying on debt, and more
what is a sum of money borrowed from a lender such as a bank or individual that the borrower promises to repay, usually with interest
What is the difference between short-term and long-term financial goals.
what is short-term financial goals are usually based on monthly or weekly budgets while long-term financial goals are usually based on yearly budgets
What is the difference between your credit score and your credit report?
what is your credit score is a number that represents your creditworthiness while your credit report is the story of your credit.
Is investments a form of income?
what is yes
What is an "emergency fund" and why should you have one?
what is a form of saving that acts as a financial safety net that helps you avoid going into debt during emergencies
What is simple interest?
what is a way to calculate interest charges based on the initial borrowed amount of money
How does a budget help someone make better financial decisions?
what is budgets helps you not spend more than your income, can help you save, and avoid debt which can help you reach long-term financial goals
What affects your credit score the most?
what is payment history
What is the difference between disposable and discretionary income?
what is disposable income is the money remaining after taxes while discretionary income is the money left after paying taxes and essential living expenses
What is the difference between the uses of checking accounts and savings accounts?
what is checking accounts are designed for daily spending while savings accounts are designed for storing money
What is compound interest?
what is interest calculated on the initial principal and also on the added up interest of previous periods.
What does it mean to live within your means
what is means to manage money wisely, prioritizing savings, tracking expenses and income, and more