Module 2 Study Guide

Front

What is renter's insurance?

Back

Renter's insurance is a type of insurance that provides coverage for a tenant's personal property within a rented residence, protecting against risks like theft, fire, and certain types of damage.

Front

What percentage of your monthly income should ideally be spent on housing?

Back

30% of your monthly income is the recommended percentage to devote to housing expenses.

Front

What are variable expenses?

Back

Variable expenses are costs that can change from month to month, such as utility bills, groceries, and entertainment.

Front

What is a budget?

Back

A budget is a financial plan that outlines expected income and expenses over a specific period, helping individuals manage their money effectively.

Front

What is direct deposit?

Back

Direct deposit is a banking service that allows an employer to electronically transfer an employee's paycheck directly into their bank account.

Front

What is homeowner's insurance?

Back

Homeowner's insurance is a type of property insurance that covers losses and damages to an individual's home and assets within it.

Front

What is a mortgage?

Back

A mortgage is a loan specifically used to purchase real estate, where the property itself serves as collateral for the loan.

Front

What are fixed expenses?

Back

Fixed expenses are costs that remain constant over time, such as rent or mortgage payments, insurance premiums, and loan payments.

Front

What is a credit card?

Back

A credit card is a financial tool that allows individuals to borrow money up to a certain limit to make purchases, with the obligation to pay back the borrowed amount plus interest.

Front

What is a mutual fund?

Back

A mutual fund is an investment vehicle that pools money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities.