Budgeting Basic
What is a budget?
A plan for saving and spending your money
The most common type of bank account
This type of credit is used for big purchases like a car
Installment loan which is a specific amount for a set period and paid back with regular payments
The total amount of your money earned before deductions
Gross pay
The most basic way to invest in a company
Needs and wants
the two words used to distinguish between things you must have to survive and things you would like to have
Emergency fund
a fund of money set aside to cover large, unexpected expenses
The 3 digit number lenders use to measure risk
FICO score
A fixed payment
A collection of various investments
mutual funds
what is paying yourself first?
How often is compound interest typically better?
the saver when it is calculated and added to the principal more frequently
What is the minimum payment on a credit card?
The lowest amount you must pay to the cc company to keep your account in good standing
Taken out of a paycheck for the government
taxes
the general relationship between risk and return
rule that states the higher the potential for gain-return and higher potential for loss -risk
what does 50/30/20 rule suggest?
This budgeting rule suggests 50% to needs, 30$ to wants ad $20 to savings/debt
THe acronym APY stands for ?
Annual percentage yield
The 3 main credit reporting bureaus
Equifax, Transunion, and Experian
to withhold income taxes
Diversification is often called
strategy of spreading investments across various assets. Not putting all your eggs in one basket
a zero based budget
a budget where income minus expenses equals exactly zer0
How FDIC protects your money?
protects bank deposits up to 250,000
How a secured credit card differs from an unsecured one
a credit card that requires you to put down a cash deposit which often becomes your credit limit
Difference between gross and net pay
Gross pay is total earned amount
How an IRA help people save for retirement
an individual retirement account designed to help people save specifically for their retirement