Personal Finance

Front

What is a budget?

Back

A financial plan that defines expenses for a period of time.

Front

What is an emergency fund?

Back

A savings account set aside for unexpected situations.

Front

Emergency funds are calculated based on: Monthly Expenses, Monthly Income, Retirement Planning, Investing for College

Back

Monthly Expenses

Front

How many months of expenses should be set aside for an emergency fund?

Back

3-6 months

Front

Why should we INVEST instead of SAVE for retirement?

Back

Investing money can make it grow in the long term.

Front

Why shouldn't we invest our emergency fund or other short-term savings?

Back

Investments are risky and can drop in value, especially in the short term.

Front

What is debt?

Back

Money you have borrowed and need to pay back

Front

What is insurance?

Back

A service purchased to protect assets and income against financial loss.

Front

What type of account allows for tax-advantaged savings and investments for college?

Back

A 529 College Savings Plan

Front

If we're trying to fund an expense that's 2 years away (FEWER than 3-5 years), should we save or invest?

Back

SAVE