Lesson 11

Match the following

• Budget Sheet

• The money you earn

• Income

• A tool an individual uses to determine the state of their finances and help them plan spending over the course of a period of time.

•  Credit Score

• An expense in your budget that you can expect to stay the same over time.

• Fixed Expenses

• A number from 300 to 850 that depicts a consumer's creditworthiness. The higher the score, the better.

Match the following

• Budget

• The state of owing money.

• Expenses

• An amount of money available for spending that is based on your income and a plan for how it will be spent.

• Debt

• An expense within your budget that changes from month to month.

• Flexible Expenses

• The money you spend on products or services.

Before creating a budget, what is the best way to determine how much money you have coming in?

• Take a guess at how much you earned this month, and then go from there

• 1. Find the average of how much you made over the course of the past three months.

• Find the average of how much money you made over the course of the past six months.

What is the purpose of a savings account?

• A savings account provides an easy way to access your money when you need to write checks or use an ATM or debit card.

• A savings account is a way to put money aside that you will not use unless you’re saving for a large purchase or you experience an emergency expense

• A savings account will pay you 20% or more to keep your money in the bank and not spend it.

Which of the following is an example of a flexible expense?

• Groceries

• Mortgage

• Student Loans

 True or False. Your credit score helps determine if you’re able to take out loans for a vehicle or a home.

• True

• False