Soteria Financial Literacy Jeopardy

Budgeting

100

This spending plan helps you set spending limits and plan for future financial needs

Budget

200

Phone bills, gym memberships, and rent are examples of expenses that stay the same each month, also called: 

Fixed expenses

300

Aim to spend no more than this % of your income on housing

30%

400

Entertainment, gifts, hobbies, and eating out are examples of "wants" instead of "needs", also called ______ expenses. It's important to trim these first if you're not following your budget. 

Discretionary expenses

500

The amount of money you take home after all deductions and taxes have been subtracted from your gross income

Net income

Savings

100

As soon as you get paid, you should immediately put a budgeted amount into savings. This is also called paying yourself ____. 

Paying yourself first

200

Spending less money than you make is a good way to increase saving. This is also called living ____ your means. 

Below

300

Before saving for large purchases, prioritize saving for an emergency fund. $_____ is a good starter goal for an emergency fund.

$1,000

400

401(K)s and IRAs are both workplace and individual savings accounts designed to be used for this purpose. 

Retirement savings

500

This type of savings account where you deposit money for a fixed period of time in exchange for a guaranteed higher interest rate. You cannot withdraw money early without paying a penalty. 

Certificate of Deposit, or "CD" 

Interest

100

Typically expressed as a percentage (%), this is the charge for borrowing money. 

Interest rate

200

The original amount of money you borrow (excluding interest) is called this. 

Principal 

300

When borrowing money, lower credit scores mean ____ interest rates, while higher credit scores mean _____ interest rates. 

higher interest rates; lower interest rates

400

When you invest money, the interest you earn over the course of the year is expressed as this 3-letter acronym

APY - annual percentage yield

500

Also called "interest on interest", this occurs when you earn interest on both the original amount of money you saved and the interest that's been added over time

Compounding interest

Credit

100

This document is a detailed record of your credit history that is compiled by credit bureaus 

Credit report

200

This 3-digit number is based on information in your credit report and represents your ability and willingness to repay a debt

Credit score

300

Background checks and pre-approval offers require this type of credit inquiry, which does NOT impact your credit score. 

Soft inquiry 

400

These are the 3 credit reporting bureaus. 

Transunion, Equifax, Experian 

500

This is the most heavily-weighted factor used to determine a credit score

Payment history 

Random

100

When you max out Soteria's 2:1 savings match as part of the IDA program, how much money will you have?

$3,000

200

Applying for a credit card or auto loan will result in this type of credit inquiry, which does impact your credit score.

Hard inquiry 

300

This is a debt repayment strategy where you pay off your smallest debt first, while making minimum payments on the others

Debt snowball method

400

These are non-profit financial institutions that offer services similar to banks and is owned by members (customers). They often provide lower fees and interest rates for loans, and higher interest rates for savings accounts

Credit unions

500

This ratio (%) represents the amount of revolving credit you're using divided by the total credit limit available to you. 

Credit utilization ratio