Budgeting
The first rule of budgeting: spend less than this.
You make or "earn".
A fee paid by a borrower to the lender for the use of borrowed money?
What is interest.
A piece of ownership in a company.
What is a Stock.
Occurs when money is withdrawn from a bank account and the available balance goes below zero.
What is Overdraft.
This type of account typically earns the lowest interest.
Checking or Savings
A budget type that gives every dollar a job before the month begins.
What is Zero Based Budget.
Paying only this amount on a credit card keeps you in debt longer
What is Minimum Payment
A mix of stocks and bonds bundled into one investment.
What is a Mutual Fund or ETF.
The amount of money you actually receive after taxes and deductions
What is take home pay or net pay.
The amount banks pay you for keeping your money with them.
What is Interest
Cutting back on these can help free up money to save or pay down debt.
What are wants.
The extra amount you pay in return for borrowing money.
What is interest
A retirement account often offered by employers.
What is a 401K.
Money set aside for future expenses, like vacation or car repairs.
What is a Sinking Fund.
This savings category should hold 3–6 months of expenses.
What is Emergency Fund
Instead of borrowing money for a large purchase you should set aside money in this type of fund?
What is a sinking fund.
Paying off the smallest balance first while making minimum payments on everything else is called this method.
What is Debt Snowball.
Retirement account using after tax money. Benefit is money is not taxed when withdrawn
What is a ROTH IRA.
When it comes to managing money, success is about ____% head knowledge and _____% behavior?
What is 20% and 80%.
Interest earned on interest already accumulated.
What is Compound Interest
In the story about Ben and Arthur, Ben came out ahead at age 65 for what main reason?
He started investing at an earlier age.
A number that represents your ability to repay borrowed money.
What is Credit Score
This is the quote that refers to what you should try to do with investing?
Buy "____," sell "______".
What is low and high.
Banks began to lend money to citizens when they realized this?
What is that they could make a profit.
Usually done through a bank and pays a bit more than your normal savings account?
What is a CD or certificate of deposit.