Budgeting
What are fixed expenses?
Regular payments that stay the same each month
What is the average APY percentage for savings accounts?
0.41
What is a mutual fund?
A combination of stocks, bonds, and other investment methods that allows for more potential reward
The charge imposed for not paying on time is the
Late Fee
Your ____ ____ is an important factor when it comes to qualifying for low interest rates.
Credit Score
Why is it a good idea to use the budget to zero method?
It´s a useful tool to help assign a job to every dollar
What are some features that checking accounts have?
Easy access to funds via ATMs and digital payment options
What is a bond?
An IOU from a company or government to investors, promising to pay them back the borrowed money (principal) plus interest
True or false: The average American household owes $7,226 in credit card debt a year
True
Cars with better _____ ______ tend to retain their value better
Fuel Economy
What is the best division between, Needs, Wants, and savings?
50% - Needs, 30% - Wants, 20% - Savings
What is simple interest?
Calculated on the principle
What are the two animals used to describe general trends of the stock market over time?
Bull and Bear
True or false: The current credit card APR is 22.8%
True
How many years does bankruptcy stay on your credit report (at least)?
7 Years
What are variable expenses?
Expenses that change month to month.
Why is it important to save money?
Emergency situations, education expenses, major purchases
What amount of money should be in your emergency fund?
3-6 months worth of expenses
Credit cards have two potential purposes:
Grow credit score/ points and rewards
How much do you have to make to start playing taxes?
14,600
What could a budget help you with?
Saving money towards goals, assigning a job to every dollar, and making informed financial decisions
What are some strategies for saving money?
Track your spending, create a budget, set specific saving goals
What should you do before investing?
Make a budget and invest based on that, pay off all high interest debt, and understand the risks
The period of time in which you do not need to pay off your credit card debt
Grace Period
What does a W-2 form report?
Employees income from the prior years and how much tax the employer withholds