Savings & Goals
Instead of spending birthday money right away, Mia puts it in her bank account to use later. This action is called this.
What is saving?
Buying something now and promising to pay for it later means you are using this.
What is credit?
In the PACED model, the "P" asks you to identify this before making any decision.
What is the problem?
A person who buys and uses goods and services is called this.
What is a consumer?
Unlike credit cards, these cards take money directly from your bank account when you make a purchase.
What is a debit card?
Buying new shoes in two months could be an example of this type of financial goal that doesn't take years to reach.
What is a short term goal?
If you borrowed $200 and haven't paid it back yet, that unpaid amount is called this.
What is debt?
The "A" in PACED represents the different choices you could make.
What are alternatives?
When money is added to your bank account, the transaction is called this.
What is a deposit?
What is borrowed money?
A student saving for a car they plan to buy after graduation is working toward this type of goal.
What is a long term goal?
This card lets you borrow money from a bank to make purchases and pay the bank back later.
What is a credit card?
When comparing choices in PACED, you judge them using these standards or priorities.
What are criteria?
When you take money out of your bank acount using cash, ATM, or transfer, you make one of these.
What is a withdrawal?
These are the regular costs people must pay for basic needs like housing, food, and medical expenses.
What are basic living expenses?
Financial experts recommend having one of these funds set aside for surprise expenses like medical bills or car repairs.
What is an emergency fund?
Lenders check this three-digit number to judge how trustworthy you are at paying back borrowed money.
This PACED step involves carefully comparing each alternative against your criteria.
What is evaluate?
This written, signed document tells a bank to pay a specific amount from your account to someone else.
What is a check?
Expenses such as rent or car payments that happen at the same time each month are called these.
What are fixed expenses?
This step in financial planning involves deciding exactly what you are saving for and how much money you need.
What is setting a savings goal?
If you only pay part of your credit card bill, the remaining balance may grow because of this borrowing cost.
What is interest?
After analyzing all options in PACED, this final step is when you choose the best one.
What is decide?
A spending plan that helps people track income and expenses is known as this financial tool.
What is a budget?
This is a record that people keep of each of their transactions, adding or subtracting from their balances.
What is a check register?