What is a budget?
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Answer
A written plan for how you will spend your money each month
A budget is a plan you make ahead of time. It shows what comes in and where it should go.
Money Basics
Budgets, saving, interest, credit, payslips and scams
Money Basics is a Bertopia flashcard pack of 73 cards: budgets, saving, interest, credit, payslips and scams. It covers budgeting; saving; simple and compound interest; credit and debt; credit scores and reports; payslips and tax (UK); spotting scams.
Sample cards
What is an emergency fund?
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Answer
Money set aside for unplanned costs like repairs, medical bills or lost income
It covers costs that are not part of normal monthly spending.
What is compound interest?
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Answer
Interest earned on your savings and on the interest already earned
With compounding, each round of interest is added to the balance, so the next round is a bit bigger.
On most credit cards, how can you avoid interest on purchases?
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Answer
Pay the full balance by the due date
Paying in full by the due date generally means no interest on purchases.
What is a credit score?
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Answer
A prediction of how likely you are to repay credit, such as a loan, on time
A scoring model calculates it from information in your credit report.
In the UK, who is entitled to a payslip?
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Answer
Employees and workers
Contractors and freelancers are not covered by this right.
Sources
22 sources
- CFPB, Budgeting: how to create a budget and stick with it, Consumer Financial Protection Bureau
- consumer.gov, Making a Budget, Federal Trade Commission
- CFPB, An essential guide to building an emergency fund, Consumer Financial Protection Bureau
- CFPB, What is compound interest?, Consumer Financial Protection Bureau
- CFPB, Simple interest and precomputed interest on an auto loan, Consumer Financial Protection Bureau
- CFPB, Credit cards key terms, Consumer Financial Protection Bureau
- CFPB, Credit card interest rates and APR, Consumer Financial Protection Bureau
- CFPB, Minimum payment and 36-month repayment box, Consumer Financial Protection Bureau
- CFPB, What is a payday loan?, Consumer Financial Protection Bureau
- CFPB, What is a credit score?, Consumer Financial Protection Bureau
- CFPB, What is a credit report?, Consumer Financial Protection Bureau
- CFPB, How do I get a free copy of my credit reports?, Consumer Financial Protection Bureau
- GOV.UK, Understanding your pay, HM Government (OGL v3.0)
- GOV.UK, National Insurance, HM Government (OGL v3.0)
- GOV.UK, Income Tax rates and Personal Allowances, HM Government (OGL v3.0)
- GOV.UK, Income Tax, HM Government (OGL v3.0)
- GOV.UK, Tax codes, HM Government (OGL v3.0)
- GOV.UK, What your tax code means, HM Government (OGL v3.0)
- GOV.UK, Emergency tax codes, HM Government (OGL v3.0)
- FTC, How to avoid a scam, Federal Trade Commission
- FTC, How to recognize and avoid phishing scams, Federal Trade Commission
- FTC, Gift card scams, Federal Trade Commission
