Budgeting, credit, saving, and other essential personal finance concepts.
40 cards · basic cards · AI-written, checked twice. Edit anything.
- What is a budget?
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A plan for how to spend your money over a set period- What is the 50/30/20 budgeting rule?
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Allocate 50% of income to needs, 30% to wants, and 20% to savings and debt repayment- What is the difference between needs and wants?
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Needs are essential to survive (food, shelter, utilities); wants are things you desire but could live without- What is income?
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Money you receive, usually from working or investments- What does it mean to balance a budget?
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Making sure your income equals or exceeds your total expenses- What is discretionary spending?
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Money spent on things you want but don't need, such as entertainment or dining out- What is essential spending?
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Money spent on necessities you must pay for to live, such as food, shelter, and utilities- What is a credit score?
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A number that indicates how reliable you are at borrowing and repaying money- What is the typical range for a credit score in the US?
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300 to 850- What does a higher credit score mean for borrowing?
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Better chance of getting approved for loans and credit cards at lower interest rates- What is a credit card?
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A card that allows you to borrow money to make purchases now and pay the balance later- What is interest?
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The cost of borrowing money, typically expressed as a percentage of the amount borrowed- What is credit utilization?
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The percentage of your available credit limit that you are currently using- What is a good credit utilization ratio?
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Under 30% of your total available credit- What is an emergency fund?
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Money saved specifically for unexpected expenses or loss of income
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