Budget
The first thing you need to include in your budget.
What is your income?
Rates your ability to pay back loans on time.
What is a credit score?
Amount of money borrowed and that is expected to be paid back with interest.
What is a loan?
The profit or loss from an investment.
What is return?
Making more money than what you spent.
What is profit?
Money earned.
What is income?
Users borrow money on the card and pay it at a later time.
What is a credit card?
The amount borrowed when taking out a loan
What is the principal?
Buying assets that increase in value over time.
What is investing?
A portion of one's personal income paid to the government.
What is income tax?
The amount of money you actually take home every month.
What is net monthly income?
The first thing you should consider when getting a credit card offer.
What is the APR rate after the introductory period expires?
Property or other security used to guarantee the repayment of a loan.
What is collateral?
The general increase of prices along with a fall in purchasing power of money.
What is inflation?
A tax on retail products based on a set percentage retail cost
What is sales tax?
Expenses that stay the same over a long period of time.
What are fixed expenses?
Maximum credit score.
What is 850?
The percentage of a financial loan which is paid as a fee over a period of time.
What is interest rate?
The value of what must be given up in order to acquire an item
What is opportunity cost?
Tax is collected on the production of specific goods.
What is excise tax?
Money spent.
What are expenditures?
The amount of credit that is used.
What is debt?
Credit score, education history, & employment history.
What are factors that can impact someones ability to take out a loan?
Ben is choosing between two savings accounts. Both accounts pay 3% interest. Account X pays compound interest. Account Y pays simple interest. Ben should choose account X because
It would pay interest on interest.
If the supply of computer engineers increases at the same time that the demand for these workers decreases, what would be the MOST LIKELY effect on wages for these workers?
Their wages would decrease.