Budgeting
This term refers to the amount of money you have left after subtracting expenses from your income.
What is surplus?
This type of savings account typically offers lower interest rates but provides high liquidity and easy access to funds.
What is a regular savings account?
This type of investment represents a loan to a corporation or government, typically providing regular interest payments and returning the principal at maturity.
What is a bond?
This term refers to the annual process of filing a return to report income, deductions, and tax liability to the government.
What is tax filing?
This type of financial institution provides checking and savings accounts, and may also offer loans and investment services.
What is a bank?
This type of budget is created by adjusting spending in real-time based on actual income and expenses rather than planning it in advance.
What is zero-based budgeting?
This type of savings account typically offers higher interest rates than a traditional savings account and may have restrictions on the number of withdrawals.
What is a high-yield savings account?
This type of investment represents ownership in a company and typically provides dividends and voting rights to shareholders.
What is a stock?
This tax form is used to report income, deductions, and credits to the IRS, and is commonly used by individuals in the United States.
What is Form 1040?
This financial product provides coverage for risks such as health issues, accidents, or property damage in exchange for regular premium payments.
What is insurance?
This document outlines expected income and expenses over a specific period and helps individuals manage their finances.
What is a budget?
The practice of setting aside money for specific future goals, such as a vacation or a new car, is known as this type of saving strategy.
What is goal-based saving?
This type of investment vehicle is designed to provide diversification and professional management, and includes options like equity and bond funds.
What is a mutual fund?
This term describes money you receive from the government or employer, which is subject to taxation, such as wages or interest.
What is taxable income?
This type of financial professional offers advice on financial planning, investment strategies, and retirement savings, and may work on a fee or commission basis.
What is a financial advisor?
This term refers to a fixed amount of money you regularly contribute to savings or investments, often on a monthly basis, as part of a budgeting strategy.
What is an automatic transfer or automatic savings plan?
This term describes the amount of money set aside for unexpected expenses or emergencies, typically recommended to cover three to six months of living expenses.
What is an emergency fund?
This strategy involves spreading investments across different asset classes, such as stocks, bonds, and real estate, to reduce overall risk.
What is diversification?
This tax advantage allows individuals to contribute pre-tax income into a retirement account, reducing their taxable income for the year.
What is a traditional IRA?
This service allows individuals to electronically transfer funds between accounts or institutions, often used for paying bills or making deposits.
What is an electronic funds transfer (EFT)?
This financial strategy suggests keeping track of all expenses and comparing them against a predetermined spending limit, with the goal of identifying and eliminating unnecessary costs.
What is variable budgeting?
The strategy of regularly saving a fixed percentage of your income, often through automatic transfers, to build wealth over time is known as this type of saving strategy.
What is systematic saving?
This approach to investing involves purchasing assets with the expectation that their value will increase over time, such as real estate or collectibles.
What is capital appreciation investing?
This term describes the system where individuals are taxed based on their income level, with higher income levels being taxed at higher rates.
What is a progressive tax system?
This financial tool offers a line of credit that you can draw from, up to a certain limit, and is typically used for short-term borrowing needs.
What is a credit card?