Eco w/ PFL Unit 4 Vocab Warm Up

What do you think an "Emergency Fund" is?

What do you think a "mortgage" is?

What do you think a "credit score" is?

What is a credit score?

• A numerical representation of a person's creditworthiness

• A measure of a person's income

• A type of bank account

• A financial safety net

Why is it important to pay off the full balance on credit cards each month?

• To avoid interest charges

• To increase credit card limits

• To earn rewards points

• To close the credit card account

What is the recommended amount to save for an emergency fund?

• Three to six months' worth of living expenses

• One month's worth of living expenses

• A year's worth of living expenses

• Two weeks' worth of living expenses