Break the Budget
Factors can affect your standard of living
What is budgeting and managing expenses effectively?
A liquid asset
What is cash or investments that can be converted quickly to cash?
A low-risk investment
What is a savings account, CD, or government bonds?
A numerical rating that represents a persons report card for credit.
What is a credit score?
the amount paid for an insurance policy
What is a premium?
Tracking expenses and sticking to a budget
What helps avoid overspending and keeps finances aligned with income?
A liability in personal financial statements
What is credit card debt?
Compound Interest
Interest earned on both the principle and interest
This affects your credit score.
What is your payment history?
The amount a policyholder must pay before insurance covers costs.
What is a deductible?
An example of a fixed expense
What is Mortgage payment?
Good debt and bad debt
What is the difference between mortgage, student loans, credit card, and debt?
a retirement account where contributions are taxed but withdrawals are tax free
What is a Roth IRA?
A credit score of 670-850.
What is a good credit score range?
It helps cover medical expenses and prevents financial hardship.
Why is health insurance important?
An example of discretionary spending
What is dining out?
The primary purpose of personal financial statements
What helps gain insight into financial health?
The age you must start taking required minimum distributions
What is 73 year old?
The ratio that compares monthly gross income.
What is debt-to-income ratio?
Type of life insurance builds cash value.
What is whole life insuranc?
The 50/30/20 rule
What is 50% needs, 30% wants, and 20% saving/debt payment?
The formula for calculating net worth
What is Assets - Liability = Net Worth?
Tax-deferred growth and employer-matching contributions
What is the primary benefit of a 401K plan?
The difference between gross and net income.
What gross is before taxes and deduction; what net is take-home pay?
Insurance that provides income if you become unable to work due to injury or illness.
What is disability insurance?