Budgeting
Term that describes the financial plan that outlines your expected income and expenses over a specific period
What is a Budget?
The maximum amount of money a lender will allow you to spend on a credit card or a line of credit.
An investment that represents a share, or partial ownership, of a company.
What is a stock?
Recommended number of months of living expenses that your emergency fund should be able to cover.
What is 3-6 months?
Deadline for most individuals to file their federal income tax returns in the United States.
It is the percentage of your monthly income that is commonly recommended to allocate for savings and investments.
What is 20-40%?
Type of interest is charged on the outstanding balance of a credit card if you don't pay the full amount by the due date?
What is compound interest?
Term for investment funds that are comprised of stocks across the NASDAQ.
What is an exchange traded fund?
Type of account is commonly used to store your emergency fund.
What is a savings account? - Even better: High yield savings account, guys ;)
Title of a professional who can help you prepare and file your taxes, as well as provide financial planning advice.
These are essentials that would include rent or mortgage, utilities, and groceries.
What are basic living expenses?
Term for a cardholder who falls behind on making required monthly payments.
What is delinquent?
Term for the increase in the value of an investment over time.
Term commonly used for a savings account that offers a higher interest rate than a regular savings account but has restrictions on withdrawals. Typically has a specific, fixed term before money can be withdrawn without penalty.
What is a CD (Certificate of Deposit)?
Name of the tax form that the IRS issues annually, summarizing an individual's earnings and taxes withheld by their employer.
What is a W-2?
Term for non-essential spending, often as a reward for meeting financial goals.
What is discretionary spending?
The amount of money that still needs to be paid on a loan.
What is balance?
Term for spreading your investments across different assets to reduce risk.
Popular personal finance term for the practice of automatically transferring a portion of your paycheck into a savings or investment account, treating it like any other bill.
What is "paying yourself first?"
Name of the form that the U.S. government uses to verify an individual's eligibility to work in the country and is often completed by both employees and employers during the hiring process.
What is an I-9?
Financial document that summarizes your income, expenses, and savings over a specific time period, typically on a monthly or annual basis?
What is a Financial Statement?
Loan that uses your home as collateral and allows you to borrow money based on your home’s value.
What is 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)?
The 50-30-20 rule.
What is the rule that recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings called?
Comprehensive document used by most U.S. taxpayers to report income, calculate tax liability, and file an annual income tax return.
What is a 1040 form?