Chapter 2 Playing Budget Challenge Flashcards

Questions and Answers

How long does the Budget Challenge Simulation last?

10 weeks

What will this simulation better prepare you for?

To better manage your financials now and as an adult.

How will you build your budget?

Using the Cash Flow Spreadsheet.

What is an Emergency Fund?

It is important to keep an emergency fund for unexpected financial events. Signup and view all the answers

What does Perfect Pay refer to?

You have to pay your credit card bill on time, every time. Signup and view all the answers

What is involved in Credit Card Management?

You have to pay off your second credit card invoice. Signup and view all the answers

What does Saving For Retirement entail?

Contribute to retirement responsibility based on a budget and a goal. Signup and view all the answers

What is Credit Health?

You have to stay under 100 credit utilization penalty points for the entire game. Signup and view all the answers

What is Debt Reduction?

Execute a plan to pay down student loan debt to avoid interest. Signup and view all the answers

How do you make payments in the simulation?

Make an e-check. Signup and view all the answers

What do you need to avoid paying bills late and achieve the six trophy goals?

You will need to stay engaged. Signup and view all the answers

If you pay a bill late, what may be eligible?

One-time late fee waiver. Signup and view all the answers

Study Notes

Budget Challenge Simulation Overview

Duration of the Budget Challenge Simulation is 10 weeks.
Designed to enhance financial management skills applicable now and in adulthood.

Budget Management Tools

Budgets are constructed using a Cash Flow Spreadsheet, aiding in tracking inflow and outflow of finances.

Financial Safety Net

Establishing an Emergency Fund is essential for handling unforeseen financial situations.

Credit Card Practices

Timely payment of credit card bills is crucial; maintaining a perfect payment record is necessary.
Management of credit card debt includes timely payment of the second credit card invoice to avoid accumulating interest penalties.

Long-term Financial Planning

Contributing towards retirement savings is vital; efforts should align with a well-structured budget and clear financial goals.

Credit Score Maintenance

Keeping credit utilization below 100 penalty points is necessary to maintain good credit health throughout the simulation.

Debt Repayment Strategies

A strategic plan must be executed for reducing student loan debt to prevent interest accumulation.

Payment Methods

Payments can be made via e-checks, providing a convenient electronic payment option.

Engagement and Accountability

Active participation is required to avoid late bill payments and to achieve six trophy goals, emphasizing the importance of staying engaged with financial management.

Consequences of Late Payments

Late payments could incur eligibility for a one-time late fee waiver, highlighting the need to manage payment deadlines effectively.

Description

Test your knowledge with these flashcards from Chapter 2 of the Budget Challenge simulation. Learn key concepts like budgeting, cash flow management, and the importance of an emergency fund. Perfect for anyone looking to enhance their financial literacy skills.