Credit Cards
This three-digit number determines how likely you are to repay borrowed money and affects your ability to get a credit card.
Credit score
This type of loan is used to buy a house and is usually repaid over 15 to 30 years.
Mortgage
A high-yield savings account differs from a traditional savings account because it offers this benefit.
This is the total amount of money you earn before taxes and deductions are taken out.
Gross income
A budget helps you track these two main financial categories—money coming in and money going out.
Income and expenses
If you don’t pay your credit card balance in full each month, this extra charge is added to what you owe.
Interest
This is the extra cost you pay to borrow money, usually expressed as a percentage of the loan amount.
Interest rate
Financial experts recommend having this many months' worth of living expenses saved for emergencies.
3-6 months
This is the amount of money you take home after taxes and deductions.
Net income
This type of expense stays the same each month, such as rent or a car payment.
fixed expense
This term refers to the maximum amount of money a credit card company allows you to borrow.
Credit Limit
Which loans are better for students? Public or private?
Public loans
This popular personal finance rule suggests saving at least 20% of your income while using 50% for needs and 30% for wants.
50/30/20 rule
This government form, received from an employer, summarizes your earnings and tax withholdings for the year.
w2 form
This term refers to money set aside for unexpected expenses, like medical bills or car repairs.
emergency fund
Making only this type of payment on your credit card each month can keep you in debt for years and cost you more in interest.
Minimum interest
This type of federal financial aid must be repaid with interest after graduation or leaving school.
This type of savings account offers a higher interest rate but requires you to leave money untouched for a set period.
What is a certificate of deposit (CD)
When your employer withholds too much tax from your paycheck, you might receive this after filing your tax return.
tax return
This type of expense can change from month to month, such as groceries, utilities, or entertainment.
variable expense
This term refers to the percentage of your available credit that you are using, and keeping it below 30% can help maintain a good credit score.
Credit utilization
The percentage rate that includes both the interest rate and any additional loan fees, giving borrowers a clearer picture of the true cost of a loan.
(What is the annual percentage rate (APR)?)
A type of retirement savings account that allows you to invest money tax-free until withdrawal, commonly used for long-term financial planning.
What is a 401(k) or an IRA?
This term refers to income earned from sources like stocks, real estate, or interest, rather than from a salary or wages.
passive income
This financial term refers to spending less money than you earn, creating a surplus that can be saved or invested.
living below your means