Finances Overview Flashcards
(25 cards)
Finances are the management of ________.
money
The money you earn from work or investments is called ________.
income
A ________ is a plan for how you spend and save your money.
budget
In the 50/30/20 budget rule, 50% goes toward _______, like rent and food.
needs
Money set aside for the future is called ________.
savings
An ____________ fund helps cover unexpected expenses like job loss or car repairs.
emergency
Borrowing money now and paying it back later is called ________.
credit
Money you owe and must pay back is called _____.
debt
A ________ score shows how reliable you are at paying back borrowed money.
credit
A high credit score leads to better ________ rates on loans.
interest
____________ is putting money into things like stocks or real estate to grow over time.
investing
Stocks represent ____________ in companies.
ownership
A ________ is when you lend money to a company or government in return for repayment with interest.
bond
A workplace retirement plan is called a ________(k).
401
An individual retirement account is called an ______.
IRA
You must pay _____ on your income to the government.
taxes
_____________ protects you from big financial losses (examples: health, auto).
insurance
The payment you make to keep an insurance policy active is called a __________.
premium
The money you give to charity can reduce your ____ bill.
tax
A long-term financial goal could be saving for ____________.
retirement
The #1 rule of money: Spend ______ than you earn.
less
Starting to invest early lets you benefit from ____________ interest (interest earning interest).
compound
Avoid ____ debt, like high-interest credit card debt.
bad
Always have an _____________ fund for emergencies.
emergency
