1. What is the average debt for individuals 22-29?
The average individual 22-29 years of age has 16,120$ dollars in debt. This is typically due to careless spending, because they are young and have no idea how to spend their money wisely. This debt is very hard to overcome, but if you are wise with their money they can.
2. Why is it important to think about "needs" and "wants"? What are the differences between these?
It is the most important thing to keep in mind when you make any decision with your money. You need to think to yourself do I really need a new shiny car, and if you do will you have enough to buy food and water. The difference is a want is something you can survive without. Although there are a few very important wants, for example a house, you can survive without one but it would not be wise to do so.
3. What are the budget guidelines that the video gives for splitting up a paycheck?
A few budget guidelines the video gives is to …show more content…
What is a credit score?
A credit score is a number that is given to you on a number of different variables. One of the biggest to determine your credit score is if you pay your payments on time. The score is a numerical value that estimates how credible you are. Credit score typically will decide if a bank will give you a loan.
7. How is a CD different from a savings account?
The biggest difference is that a CD has to be held in the bank for a certain amount of time, while earning interest. On the other hand a savings account does not have to be held in the bank for a predetermined amount of time to earn interest.
8. What is an IRA?
An IRA is an account that is saved up at a bank. This is for a retirement with tax free growth. There are three different types of IRA, traditional, roth, and rollover. Traditional IRA is where you contribute pre tax and after tax. Roth IRA is where someone sets the money for after tax for you. Rollover IRA is when you move your 401k into an IRA.
9. Why is insurance
The average individual 22-29 years of age has 16,120$ dollars in debt. This is typically due to careless spending, because they are young and have no idea how to spend their money wisely. This debt is very hard to overcome, but if you are wise with their money they can.
2. Why is it important to think about "needs" and "wants"? What are the differences between these?
It is the most important thing to keep in mind when you make any decision with your money. You need to think to yourself do I really need a new shiny car, and if you do will you have enough to buy food and water. The difference is a want is something you can survive without. Although there are a few very important wants, for example a house, you can survive without one but it would not be wise to do so.
3. What are the budget guidelines that the video gives for splitting up a paycheck?
A few budget guidelines the video gives is to …show more content…
What is a credit score?
A credit score is a number that is given to you on a number of different variables. One of the biggest to determine your credit score is if you pay your payments on time. The score is a numerical value that estimates how credible you are. Credit score typically will decide if a bank will give you a loan.
7. How is a CD different from a savings account?
The biggest difference is that a CD has to be held in the bank for a certain amount of time, while earning interest. On the other hand a savings account does not have to be held in the bank for a predetermined amount of time to earn interest.
8. What is an IRA?
An IRA is an account that is saved up at a bank. This is for a retirement with tax free growth. There are three different types of IRA, traditional, roth, and rollover. Traditional IRA is where you contribute pre tax and after tax. Roth IRA is where someone sets the money for after tax for you. Rollover IRA is when you move your 401k into an IRA.
9. Why is insurance