7SS - 30a - Budgeting

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What is 'good debt'?

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'Good debt' refers to borrowing that is considered beneficial, such as student loans or mortgages, which can lead to future financial gain.

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What is 'bad debt'?

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'Bad debt' is borrowing that does not provide a return on investment, such as credit card debt used for non-essential purchases.

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What does it mean to be 'over budget'?

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Being 'over budget' means that your expenses exceed your income, leading to potential financial issues.

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What is a budget?

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A budget is a plan that outlines expected income and expenses over a specific period.

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What is income?

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Income is the money received, typically on a regular basis, for work or through investments.

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What is an expense?

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An expense is the money spent on goods and services.

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What is the difference between needs and wants?

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Needs are essential for survival (like food and shelter), while wants are non-essential items that enhance quality of life.

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What is a credit card?

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A credit card is a payment card that allows the holder to borrow funds to pay for goods and services, with the agreement to pay back the borrowed amount plus interest.

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What is savings?

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Savings is the portion of income that is not spent and is set aside for future use.

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What is a financial goal?

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A financial goal is a specific objective to achieve in terms of money, such as saving for a vacation or paying off debt.