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Personal Finance
Personal Money Management/Budget
Question | Answer |
---|---|
What is money that comes in, usually through working? | income |
Things that we want but don't need are called what? | luxary |
A plan for how money will be spent is a? | budget |
expenses that are required for living | essential expense |
expenses that you spend extra money on | non-essential expense |
expenses that vary each month | variable expenses |
expenses that are the same each month | fixed expenses |
Money set aside over time | savings |
A charge a bank pays you for using your money, or that a bank or company charges you for using their money | interest |
earning interest on interest | compund interest |
spending money in hopes of earning more money in the future | investing |
the possibility of losing money while investing | risk |
money that you borrow from a bank or company, or the ability to borrow money | credit |
a card that used for purchases in which the money comes directly from your checking account | debit card |
a card that allows you to purchase to a line of credit for which you are billed later | credit card |
What are the ways people can get income? | working, investing, gifts, or selling things. |
Why is a budget a good thing to use? | It helps you to plan ahead and lets you know where your money is going. |
What is the goal of saving money? | The goal is to save money. This can be done to make an expensive future purchase or for retirement. |
What is the long-term savings goal for most Americans? | retirement |
What is the best way to save money? Why? | The best way to save money is in a bank because you can earn interest on your money. |
What is the biggest investment most people make? | For most people the biggest investment they make is a home. |
What are stocks? | small investments in large companies |
What are bonds? | money loaned to governments. |
Why should you only borrow money that is absolutely necessary? | You will have to pay back interest, so you usually have to pay back more than you owe. |
What are some types of credit? | credit cards, home loans, student loans |
What is the key to personal finance? | Having more money coming in than going out. |