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What is a balanced budget?

Back

A balanced budget occurs when total income equals total expenses, meaning there is no deficit or surplus.

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How do you calculate the amount of money left after expenses?

Back

Subtract total expenses from total income. For example, if income is $1520 and expenses are $1055, then $1520 - $1055 = $465 left.

Front

What is the average rent to income percentage?

Back

The average rent to income percentage is typically 30%, meaning that no more than 30% of a person's income should be spent on rent.

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How do you convert seconds into hours and minutes?

Back

To convert seconds to hours, divide by 3600. To find minutes, take the remainder seconds after hours and divide by 60.

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What is a late payment fee?

Back

A late payment fee is a charge imposed when a payment is not made by the due date.

Front

What is a balance transfer fee?

Back

A balance transfer fee is a charge for transferring a balance from one credit card to another, usually a percentage of the amount transferred.

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What is a cash advance fee?

Back

A cash advance fee is a charge for withdrawing cash from a credit card, typically a percentage of the amount withdrawn.

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What is an annual fee in credit cards?

Back

An annual fee is a yearly charge by a credit card issuer for the benefits of using the card.

Front

How do you determine the maximum amount to spend on discretionary items?

Back

Subtract fixed expenses from total income to find discretionary income, then determine how much can be spent without exceeding the budget.

Front

What is the formula to calculate rent affordability?

Back

Rent affordability can be calculated by multiplying monthly income by 0.30 (30%). For example, $2355 x 0.30 = $706.50.