Basics
Assets minus liabilities
Net worth
Limited physical cash to control how much you spend
Cash Envelopes
A three digit indication to potential lenders of your ability to repay money you borrow
Credit Score
An employer-sponsored retirement account where you can contribute
401K
3 to 6 months’ worth of living expenses and could save your budget
Emergency fund
The interest rate credit cards charge on unpaid balances
Annual Percentage Rate (APR)
This payment covers principal, interest, taxes and insurance for where you live
Mortgage
The amount you earn from the balance of your savings account
Annual Percentage Yield (APY)
Your credit score is 720. You have _________ credit
Good
“A piece of the pie” of a public company’s assets and earnings
Stocks
A top-yielding savings account that pays a higher interest rate; max 6 withdrawals per month
Money Market Account
This type of rate loan have an interest rate that changes over time
Variable
Periodic payouts of earnings that companies may give to certain shareholders
Dividends
This savings account is guaranteed to pay interest as long as you promise not to touch it-for years and....you have to buy it 1st
Certificates of Deposit (CD)
Pay all extra money toward the one debt with the highest interest rate
Debt Avalanche