Money Mindsets
This term describes your overall attitude and beliefs about money, which can influence spending decisions
What is a money mindset?
This type of bank account allows you to write checks and make daily transactions.
What is a checking account?
This is a plan that outlines your expected income and expenses over a period of time.
What is a budget?
This fund is set aside for unexpected expenses like car repairs or medical bills.
What is an emergency fund?
This three-digit number represents your creditworthiness and affects loan approvals.
What is a credit score?
Avoiding these online schemes, like phishing emails promising free money, is key to protecting your finances.
What are financial scams (or fraud)?
This feature lets you access your bank account via an app or website to transfer funds securely.
What is online (or mobile) banking?
Including a portion of your budget for this, like donations to charity, helps build community awareness.
What is giving (or charitable contributions)?
Starting early with this type of account, like a 401(k), helps grow money for your post-work years.
What is retirement (or a retirement account)?
Paying your bills on time is a best practice for building this positive financial history.
What is good credit (or credit history)?
Being a smart one of these means comparing prices and reading reviews before buying.
What is a consumer?
This is the minimum amount you must keep in some savings accounts to avoid fees.
What is a minimum balance?
Tracking these, such as short-term like buying a phone or long-term like a car, keeps your finances on track.
What are financial goals?
These government incentives, like deductions for retirement contributions, make saving more efficient.
What are tax advantages (or tax incentives)?
This type of loan, used for buying a house, requires good credit and often a down payment.
What is a mortgage?
This mindset involves recognizing emotional triggers that lead to impulse purchases.
What is emotional spending (or impulse buying)?
Overdrawing your account can lead to these charges, which banks impose for insufficient funds.
What are overdraft fees?
This strategy involves allocating 50% of income to needs, 30% to wants, and 20% to savings/debt.
What is the 50/30/20 rule?
Compound this grows your savings faster by earning returns on both principal and previous earnings.
What is interest?
This report details your borrowing history and is checked by lenders; errors can hurt your score.
What is a credit report?
In a global marketplace, understanding currency exchange rates helps avoid losses in these transactions.
What are international (or cross-border) transactions?
This secure method uses biometrics or two-factor authentication to protect online banking sessions.
What is multi-factor authentication (or security protocols)?
Adjusting your budget for this economic event, where prices rise, involves cutting non-essentials.
What is inflation?
Planning for these future milestones, like college or a wedding, requires estimating costs and saving rates
What are life goals (or major life events)?
This ratio compares your debt payments to income and should be under 36% for healthy credit.
What is debt-to-income ratio?