Credit Crusher
What is Credit?
The ability to borrow money or obtain goods/services now and pay later.
What is income?
Money you receive, usually from working or other sources.
What is a checking account?
An account designed to hold money for future use and typically can earn interest.
What is a budget?
A plan for how you will spend, save, and manage your money.
What is impulse buying?
Making an unplanned purchase without carefully considering whether you need or can afford it.
Name the 3 major credit bureaus.
Experian, Equifax, and TransUnion
What is the difference between a need and a want?
A need is something necessary; a want is something you would like but can live without.
What is a savings account?
An account designed to hold money for future use and typically earn interest.
What is a fixed expense?
An expense that generally stays the same from month to month, such as rent.
Is "Buy Now, Pay Later" free money?
No. Its a form of financing/borrowing that can involve payments and fees.
What is a credit score?
A number that represents how likely a person is to repay borrowed money.
What is saving?
Setting money aside for future use.
What is interest?
Money earned or charged for the use of money.
What is a variable expense?
An expense that can change from month to month, such as groceries or entertainment.
Name one sign of a SCAM?
guaranteed profits, pressure to act IMMEDIATELY, request for money or personal information or promises that seem too good to be TRUE.
$1,000 limit + 300 balance = what utilization?
30%
What is an emergency fund?
Money saved to pay unexpected expenses or emergencies.
What is an overdraft?
Spending more money than you have available in your account.
Earn $3,000 spend $2,400. What's left?
$600
Why can minimum payments be EXPENSIVE?
$2,000 limit + $1,500 balance = what utilization?
75%
What should you consider before making a large purchase?
Whether you can afford it, whether it's a need or want, and how it will affect your budget/savings.
Why should you monitor your bank account?
To track spending, catch errors or unauthorized tractions, avoid overdrafts, and manage your money.
Earn $3,500 expenses $3,200. Can you afford $500 shoes?
No. You only have $300 left.
Why is high income not necessarily wealth?