| Income | Budgeting | Savings | Debt | Loan |
|---|---|---|---|---|
|
The money that a person or company receives in exchange for their labor or products.
What is income?
|
Monthly
How often is it reccomended to create a budget?
|
It provides financial security in case of emergencies and serves as "seed money" for future investments
Why is saving money important?
|
The state of owing money
What is debt?
|
When money is given to someone in exchange for repayment of the loan amount plus interest.
What is a loan?
|
|
Gross income is what employees earn before taxes, however net income is the income left over after subtracting taxes or fees.
What is the difference between Net income and Gross income?
|
A spending plan using income to meet your expenses and financial goals
What is a budget?
|
Regular savings account, online savings account, high yield savings account, student savings account, CD's, Money Market accounts, Cash management account, health savings account, IRA, Roth IRA.
Name one example of a type of saving
|
Debt collectors, poverty, derceased credit history/score, sued in court.
What happens if one remains in debt too long?
|
The price you pay to borrow money or the cost you charge to lend money.
What is interest?
|
|
wages, salary, tips, commissions,rental properties, royalties, limited partnerships, interest, dividends and capital gains on investments
Name an example of a possible source of income
|
Flexible and personalized
What are key traits that all budgets should have?
|
Helps in emergencies, finance vacations, reduces stress, limits debt, financial freedom, prepare for retirement, fund education, weddings, cars.
Name a benefit of saving money
|
A person or a company that regularly collects debts owed to others, usually when those debts are past-due.
What is a debt collector?
|
The amount of time that the borrower has to repay the loan.
What is a loan term?
|
|
Inheritances, gifts and/or bequests.
Name an example of an income that isn't taxed
|
Need
Does a "gym membership" classify as a need, want, or saving?
|
A CD expects that the deposited funds will be left untouched for months or years. On the other hand, checking accounts allow for frequent deposits and withdrawals.
What is the difference between a Certificate of Deposit and a Checking account?
|
create more sources of income, pay bills on time, reduce interest rates
Name a way someone can get out of debt.
|
late fees or penalties, wage garnishment, drop in your credit score, loan defaultment, increased debt
Name a consequence of not paying back a loan on time
|
|
A budget!
What is the most effective way of tracking income?
|
Spending about 50% of income on needs, 30% on wants and 20% on savings and paying off debt.
What does the 50/30/20 budget stand for?
|
3 to 6
You should have _ to _ months of expenses on hand in your emergency fund
|
Medical bills, Mortgage, Gambling, illness, divorce, bad budgeting, student loans
What are some common causes of debt?
|
borrower's income, credit score, and/or debt levels
Name one example of something that lenders consider before giving out loans
|
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