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Personal Money Management/Budget

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Question
Answer
What is money that comes in, usually through working?   income  
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Things that we want but don't need are called what?   luxary  
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A plan for how money will be spent is a?   budget  
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expenses that are required for living   essential expense  
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expenses that you spend extra money on   non-essential expense  
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expenses that vary each month   variable expenses  
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expenses that are the same each month   fixed expenses  
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Money set aside over time   savings  
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A charge a bank pays you for using your money, or that a bank or company charges you for using their money   interest  
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earning interest on interest   compund interest  
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spending money in hopes of earning more money in the future   investing  
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the possibility of losing money while investing   risk  
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money that you borrow from a bank or company, or the ability to borrow money   credit  
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a card that used for purchases in which the money comes directly from your checking account   debit card  
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a card that allows you to purchase to a line of credit for which you are billed later   credit card  
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What are the ways people can get income?   working, investing, gifts, or selling things.  
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Why is a budget a good thing to use?   It helps you to plan ahead and lets you know where your money is going.  
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What is the goal of saving money?   The goal is to save money. This can be done to make an expensive future purchase or for retirement.  
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What is the long-term savings goal for most Americans?   retirement  
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What is the best way to save money? Why?   The best way to save money is in a bank because you can earn interest on your money.  
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What is the biggest investment most people make?   For most people the biggest investment they make is a home.  
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What are stocks?   small investments in large companies  
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What are bonds?   money loaned to governments.  
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Why should you only borrow money that is absolutely necessary?   You will have to pay back interest, so you usually have to pay back more than you owe.  
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What are some types of credit?   credit cards, home loans, student loans  
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What is the key to personal finance?   Having more money coming in than going out.  
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Created by: dedington1
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