Personal Fiance 6

Front

What is a budget?

Back

A plan for how money will be used.

Front

What is a variable expense?

Back

An expense that costs different amounts every month.

Front

What does it mean to buy something on credit?

Back

To buy something now and pay for it later.

Front

What is a debit card?

Back

A card that takes the money out of your account immediately.

Front

What is a salary?

Back

The amount of money a person can earn by being self-employed or by doing a job for another person or business.

Front

What is a fixed expense?

Back

An expense that costs the same amount every month.

Front

What is the difference between saving and investing?

Back

Saving is setting aside money for future use, while investing is using money to purchase assets with the expectation of generating a profit.

Front

What is interest?

Back

The cost of borrowing money or the earnings from saving or investing money.

Front

What is a credit score?

Back

A numerical representation of a person's creditworthiness based on their credit history.

Front

What is the purpose of an emergency fund?

Back

To provide financial security in case of unexpected expenses.