Final Exam Review #2

2. A system used to divide income into needs, wants, and savings/debt
3. Using money in a way that allows it to grow and earn more money
7. A structured plan used to achieve financial goals over time
12. Money set aside to cover unexpected expenses or emergencies
13. Financial strategy that spreads money across different assets to reduce risk
14. A type of credit that allows repeated borrowing up to a limit
15. The difference between what you must have and what you want

1. Score A number that represents how trustworthy you are at repaying debt
4. Money left after taxes and deductions are taken out of earnings
5. Money collected by the government to fund public services
6. The cost you give up when choosing one option over another
8. The percentage cost of borrowing money (annualized)
9. The ease of converting assets into cash without losing value
10. Income Money earned after all deductions are removed
11. A loan used specifically to purchase a home
16. A written form that determines how much tax is withheld from your paycheck