Planning & Budgeting Terms
Annual Percentage Rate (APR)
A yearly percentage used to compare different types of payment or cost plans.
Credit Score
A number that reflects how consistently a person handles payment responsibilities over time.
Spending-to-Income Ratio
How much of your monthly income goes toward regular payments or responsibilities.
Planned Payments
Payments that are scheduled in advance and tied to a plan or agreement.
Organization & Saving Terms
Emergency Fund
Money kept aside to help with unexpected changes or needs.
50/30/20 Rule
A suggested method of dividing income: 50% for essentials, 30% for flexible use, 20% for future planning.
Net Worth
The total of what someone owns minus what they owe. A general snapshot of financial status.