Banking
What is the main purpose of a checking account?
To deposit, withdraw and spend money for everyday purchases.
What is credit score?
A number that represents how well someone manages money
What are taxes?
Money collected by the gov to pay for public services.
What is money set aside for later on called?
Savings
What is something you do to save money called?
Budget
What is the main difference between checking account and saving account?
Checking is for everyday spending. Saving account to store the money away.
What is considered a good credit score?
670 or higher
What is tax refund?
Money returned to a taxpayer.
What is something you can do to save money?
Set goals
What are variable expenses?
Expenses that can change each month.
What is a debit card used for?
To make purchases.
What is a credit card?
A card that lets you borrow money to make purchases and repay the amount later on.
What is a W-2 form used for?
To report an employees yearly wage and taxes
What is buying something and hoping the value increases?
Investing
Why is budgeting important?
Helps you control your spending.
What happens if you go over the max amount on your card?
You will be charged with a overdraft fee.
What is an auto loan?
A loan to buy a vehicle.
What happens if youn do not pay your taxes?
You could get penalitilized, higher interest.
What is money you earn from a investment?
Return
What is a spending limit?
Max amount you can spend.
Why is it important to keep up with your account balance?
Avoid overspending, overdrafts, and make sure you don't get hacked.
What is a mortgage loan used for?
To buy a home or land.
What is the purpose of income taxes?
To fund government services.
What is spreading money across various investments called?
Diversification
What is over spending?
Spending more money than you can afford.