Credit Follows You
What is a credit score?
A number that shows how likely you are to repay debt
What is a financial goal?
A money-related thing you wish to achieve?
What's the name of the card that pulls money from your bank account?
Debit card
What's the money you take home after taxes called?
Net pay
Name something that can hurt your credit score
Missing a payment, too high credit utilization, late payments, etc.
Give me an example of a SMART goal
"I want to save $200 for new shoes in 2 months"
What's the difference between a debit and credit card?
Debit uses your money, credit uses borrowed money
Give an example of a want
Name-brand clothes, candy, Lego, etc
Name two deductions you might see on a paystub
Federal taxes, state taxes, social security, medicare, etc.
How can checking your credit report help you?
You can spot errors or identity theft
Why is it important to write down your financial goals?
It helps you stay focused and motivated
What's a downside to using a credit card too much?
You could owe a lot in interest
What's the risk of spending too much on wants before needs?
You may not have enough for essentials, could overdraft account, may end up in debt
What is a W-2 and its purpose?
A paper your job gives after the end of the year. It shows how much you earned and paid in taxes that year.
What is one way to build credit responsibly?
Using a credit card and paying it off IN FULL each month
What do you call money you save for emergencies?
An emergency fund
Name one safe way to shop online
Use trusted websites, avoid public wi-fi, do not allow saving of card information on public computers
What is a simple way to tell if something is a need?
Ask: Do I need this to live or work?
What is a tax return?
Money the government gives back if you paid too much in taxes
Explain how missing one credit card payment could hurt you short-term and long-term
Short term: late fees, lower credit score
Long term: Higher interest rates, denied loans/credit cards
What are steps you would take to set and reach a financial goal
Create a budget, break goal into monthly savings plan, reduce spending, track progress
What are the three main payment methods, and what are the pros/cons of each
Credit, debit, and cash
Give an example of creating a daily spending decision that shows you choosing a need over a want
Example: Packing a lunch instead of buying fast food, thrifting instead of buying name-brand clothes
If your gross pay is $800 and 20% is taken out, how much is your net pay?
$640 (800 x .80)