BANZAI Teen Assessment

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What is a lease?

Back

A lease is a legal agreement between a landlord and a tenant that outlines the terms under which the tenant can occupy a rental property.

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What does it mean to make a minimum payment on a credit card?

Back

Making a minimum payment means paying only the smallest amount required by the credit card company, which does not pay off the full balance and may incur interest.

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What is a health insurance copay?

Back

A copay is a fixed amount you pay for a specific medical service, such as a doctor's visit, at the time of service.

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What happens if you don’t pay your credit card balance in full each month?

Back

If you don’t pay your balance in full, you will accrue interest on the remaining amount, increasing your total debt.

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Why is it important to record income in your budget?

Back

Recording income helps you track your earnings, manage your expenses, and plan for savings or investments.

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What is a mortgage?

Back

A mortgage is a loan specifically used to purchase real estate, where the property serves as collateral for the loan.

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What is the difference between a lease and a rental agreement?

Back

A lease typically covers a longer term (usually a year) and is more formal, while a rental agreement is often month-to-month and more flexible.

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What is the purpose of a budget?

Back

A budget helps you plan your finances by tracking income and expenses, ensuring you live within your means.

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What is interest in terms of credit cards?

Back

Interest is the cost of borrowing money, expressed as a percentage of the amount owed, charged by credit card companies if the balance is not paid in full.

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What is the significance of an emergency fund?

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An emergency fund is savings set aside for unexpected expenses, providing financial security and peace of mind.