Advanced Budgeting Vocabulary

Paying a loan off in installments, rather than one lump sum, is called ________.

• Amortize

• Refinance

• Collateralize

• Underwrite

The abbreviation for annual percentage rate is ________.

• APR

• API

• APY

• AER

A request submitted to your insurance provider to help pay for covered expenses is called a ________.

• Claim

• Invoice

• Receipt

• Premium

A type of auto insurance that protects against damage costs accrued by the policyholder is called ________.

• Collision Coverage

• Liability Coverage

• Comprehensive Coverage

• Personal Injury Protection

Car insurance that protects against damage that isn't caused by a collision is called ________.

• Comprehensive Coverage

• Liability Coverage

• Collision Coverage

• Personal Injury Protection

A detailed list of the factors contributing to your credit score, including open accounts and payment histories, is called a ________.

• Credit Report

• Credit Limit

• Credit Inquiry

• Credit Card Statement

A number assigned to an individual that quantifies their ability to use and pay back credit is called a ________.

• Credit Score

• Bank Statement

• Loan Term

• Interest Rate

A calculation that divides the debt you have by the amount of money you make to produce a percentage that helps lenders decide your ability to pay back a loan is called ________.

• Debt-To-Income Ratio

• Credit Utilization Rate

• Net Worth Statement

• Amortization Schedule

The amount you'll need to pay before insurance kicks in and covers the rest of your costs is called a ________.

• Deductible

• Premium

• Copayment

• Out-of-pocket maximum

A budgeting method where you record your earnings twice: once in your account and once in your budget, is called ________.

• Double Entry Accounting

• Zero-Based Budgeting

• Envelope System

• Incremental Budgeting