Budgeting
A personal budget should account for what two major categories?
What are income and expenses?
The maximum amount of money a lender will allow you to spend on a credit card or a line of credit.
What is a credit limit?
An investment that represents partial ownership of a company.
What is a stock?
This is the rule that recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings.
What is the 50/30/20 rule?
Annual deadline for most individuals to file their federal income tax returns in the United States.
What is April 15th?
The practice of automatically transferring a portion of your paycheck into a savings or investment account, treating it like any other bill is called this.
What is "paying yourself first"?
This type of interest is charged on any outstanding balance of a credit card if you don't pay the full amount by the due date.
What is compound interest?
The payment a company makes to its shareholders, usually in the form of cash or additional stock, as a share of its profits are called this.
What are dividends?
Recommended number of months of living expenses that your emergency fund should be able to cover.
What is 3-6 months?
DOUBLE JEOPARDY
Title of a professional who can help you prepare and file your taxes.
What is a CPA (Certified Public Accountant)?
These are essentials that would include rent or mortgage, utilities, and groceries.
What are essential living expenses?
Term for a cardholder who falls behind on making required monthly payments.
What is delinquent?
DOUBLE JEOPARDY
Term for the increase in the value of an investment over time.
What is capital appreciation?
Type of account commonly used to store your emergency fund?
What is a savings account?
Bonus 200: What type of account SHOULD you use to store your emergency fund?
Name of the tax form issued annually by the IRS, which summarizes earnings and taxes withheld by an employer.
What is a W-2?
Money used for non-essentials or “wants” rather than “needs” is called this.
What is discretionary spending?
The amount of money remaining to be paid on a loan.
What is a balance?
Term for spreading your investments across different assets to reduce risk.
What is diversification?
Term for a savings account with higher interest rates and withdrawal restrictions, often with a fixed term.
What is a CD (Certificate of Deposit)?
A qualifying child who relies on parents for financial support is called this.
What is a dependent?
Financial document that summarizes your income, expenses, and savings over a specific time period, typically on a monthly or annual basis.
What is an Income Statement?
Loan that uses your home as collateral and allows you to borrow money based on your home’s value.
What is a home equity loan?
Type of retirement account that allows you to contribute money without paying taxes first.
What is a Traditional IRA (Individual Retirement Account)?
This type of account combines features of a savings account and a checking account, offering higher interest rates, limited withdrawal, and a higher minimum balance.
What is a Money Market account?
“Nothing is certain except death and taxes” is a quote by this famous Bostonian.
Who is Benjamin Franklin?