| A | B |
|---|
| Simple Interest | the amount of money paid or earned for the use of money |
| Compound Interest | interest calculated on both the principal and the accrued interest |
| Rate of return | the return on an investor's capital. Also called Yield. |
| EE Savings Bonds | government investment which you put down in cash half the face value and wait for it to mature |
| Mutual Funds | a pool of money invested by a professional in a group of stocks |
| Stocks | shares of ownership in a corporation |
| Bonds | a certificate issued by a government or private company which promises to pay back with interest |
| Individual Retirement Account | a self-funded retirement plan that allows you to contribure a limited yearly sum toward your retirement |
| Saving Accounts | the amount of money you have in the bank that you receive interest on |
| Certificates of Deposit | you are loaning a bank money for a set period of time and getting interest in return |
| Principal | the major party to a financial transaction at a stock exchange |
| Annual Percentage Rate | the total cost of credit expressed as a yearly percentage |
| Maturity Date | the date when a bond will be repaid |
| Direct Deposit | an automatic deposit of a paycheck without having to take a physical check to the bank |
| Payroll Deduction | charges subtracted from your paycheck |
| FDIC | a federally sponsored corporation that insures accounts in national banks and other qualified institutions |
| Rule of 72 | the amount of time it takes for money to double in value |
| Asset | something of value, a resource |
| Diversification | a risk management technique that mixes a wide variety of investments within a portfolio |
