| A | B |
|---|
| saving | the process of setting money aside for a future date |
| investing | the process of setting money aside to increase weatlh over time and accoumluate funds for long-term financial goals |
| deposit | money put into a savings or checking account |
| withdrawal | money take out of your savings or checking account |
| interest | money paid to you by the bank for being able to use your money |
| interest rate | percentage you are paid for your money |
| account balance | total amount of money that is in an account |
| compounding interest | when money is earned on the amount in the account including the initial deposit AND interest that has already been credited to the account |
| future value | how much a set amount of money will be worth in the future |
| present value | the value of money right now, today. |
| discount factor | the amount ath $1 as some point in the future is worth today |
| rule of 72 | a formula designed to help estimate how long it will take to double their money at a certain expected interest rate |
| beginning account balance | balance on the first day of the month |
| ending account balance | balance on the last day of the month after all additions and subtractions |
| routing number | number indicating the bank the check is drawn from |
| credit | money put into your checking account |
| debit | money withdrawn from a checking account |
| reconciliation | comparing your checking account register to the bank's statement |
| statement balance | amount of money the bank states you have in your checking account as of the statement date |
| debit card | a card that allws the user to withdraw money from a bank account to obtain cash or make purchases |
| PIN | four-digit code connected to a dbit card; verifies your identity |
| EFT | the movement of funds using a computer, telephone or electronic terminal |
| online banking | allows account holders to access their account information, view transactio history, and perform banking transactions via the Internet |
| overdrawn | having a negative balance in your account |
| overdraft penalty | a fee to cover the cost of processing your bad check |
| bounced check | check that is written for more than you have in your account |
| overdraft protection | arrangement with the bank to cover checks so they will not bounce |
| minimum account balance | the amount of money you must keep in the account to avoid service charges |
