Budgeting and Spending
How old do you have to be to open a savings account?
18 years old
What is Gross Pay?
The amount before deductibles.
What do you do first In the Pay first budgeting system?
Put your money in a savings account.
How does interest fees impact spending, debt, and savings?
It increases the cost of debt making more debt over the time and less money for you to spend
Apartments Vs. Homes which one usually cost cheaper?
Apartments but usually smaller spaces
What is a fixed expense?
Expenses that never change.
What is Net pay?
The amount after the deductibles
What is the 50/30/20 rule?
Needs 50%, Wants 30%, 20% saving.
What are some types of Fees?
Decline fees, Transaction fees, and service fees
What are doing doing for the landlord if your rent covers most of there cost?
You are paying for living fort them
Amount that you have to pay before the insurance company will pay?
Deductible
What is a salary?
the insurance company paying the amount of a loss as long as you pay the amount, small amount, they give you
Difference between Compound and Simple interest?
compound interest earns both on the principal and on the accumulated interest of previous periods.
Principal x rate x tenure
What is a key advantage for renting?
Usually a 30 day term offering you flexibility
The amount you pay for a insurance policy?
Premium
What is a wage?
the insurance company paying the amount of a loss as long as you pay the amount, small amount, they give you
A traditional savings account is a low-risk __________ for storing money, typically offered by _____________, that earns interest on deposited funds
bank account, brick-and-mortar banks
How does interest rate affect your savings?
The money that you have to return the money earned for savings and invesments
What is a disadvantage of renting?
If the landlord sells the property than you have to move out if the new landlord doesn't want you there
What are variable expenses?
Expenses that can fluctuate.
What is commission?
a type of compensation where employees earn a percentage of the revenue they generate, typically from sales.
What is the interest rate for online savings accounts?
3-5%
Four things that motivates interest rate?
Supply and demand of money
Equity = what you home is ______ minus what you _______ on you mortgage.
Worth, owe