Budgeting Basics
A detailed written plan for how you will spend and save your money each month.
What is a budget.
The plastic card that allows you to borrow money up to a certain limit to make purchases.
A type of investment that represents a tiny share of ownership in a corporation.
what is a stock.
The amount of money you make from your job before any taxes or dedications are taken at.
What Is a gross pay.
this type of financial goal might include saving for a vacation next year.
what is a short term goal.
expenses that don’t change from month to month, like rent or a car payment.
What are fixed expenses.
What is a credit score.
A type of investment that is essentially a loan made from you to a corporation or government
What is a bond.
The amount of money you actually take home in your paycheck after taxes and deductions.
This is the money you put aside for unexpected expenses.
what is a emergency fund.
Expenses that are changed frequently such as grocery's and entertainment.
What are variable or flexible expenses.
A detailed history that shows all the loans you have ever taken out and wether you have payed them back on time.
what is your credit history.
A age old investing advice that warns against putting all your investments into one assessed sheet.
what is diversification.
The official government form that your employer sends you every January summarizing your earnings and taxes Withheld.
what is a W-2.
A common long term financial goal is saving for this after you stop working.
what is retirement.
A fundamental rule of budgeting that means spending less money than you earn.
What is living below your means.
The extra money you are charged by a bank or lender for borrowing money.
what is a interest.
The process of earning interest on both your original money and the interest that money has already accumulated.
what is a compound interest.
The acronym for the retirement account that is sponsored by a employer and allows you to save pre-tax money.
what is a 401 (k)
This tool helps track income and expenses.
Money set aside specifically for unexpected emergencies, such as a sudden car repair or medical repair.
The acronym for a type of interest rate that includes all fees allowing you to easily compare different loans.
what is a apr annual percentage rate.
The document or online portal Where you can track the exact history of a stocks market value.
what is a ticker symbol.
The mandatory fee you pay to the government on the things you buy like clothing or electronics.
what is a sale tax.
Paying yourself first usually means putting money into this.
what is savings.