| A | B |
|---|
| Budget | A plan for using your money in a way that best meets your wants and needs. |
| Certificate of Deposit (CD) | A time deposit that requires you to leave your money in a financial institution for a set amount of time. |
| Assets | Any items of value that you own. |
| Bankruptcy | Legal processes in which some or all of the assets of a debtor are distributed among the creditors because the debtor is unable to pay his or her debts. |
| Bull market | Occurs when investors are optimistic about the economy and buy stocks. |
| Bear market | Occurs when investors are pessimistic about the economy and sell stocks. |
| Annual percentage yield | The amount of interest that a $100 deposit would earn, after compounding, for one year. |
| Capital gain | The profit from the sale of an asset such as stocks, bonds, or real estate. |
| Capital loss | The sale of an investment for less than its puchase price. |
| Corporate bond | A corporation's written pledge to repay borrowed money, along with interest |
| Credit rating | A measure of a person'a ability and willingness to make credit payments |
| Debit card | Allows you to withdraw money or pay for purchases from your checking or savings account (electronically) |
| Credit | An arrangement to receive cash, goods or services now and pay for them in the future |
| Commission | Employees that earn a percentage of their sales, work on... |
| Compound Interest | The process in which interest is earrned on both the principal (the amount you deposited) and on any previously earned interest |
| Default | Unable to make payments |
| Federal Reserve System | Central banking system of the US |
| Dividends | Distributions of money stock and other property that a corporation sometimes pays to stockholders |
| Diversification | Process of spreading your assets among several different types of investments to lessen the risk |
| Endorsement | Signature of the payee, on the back of the check |
| Face Value | The dollar amount that the bondholder will receive at the bond's maturity |
| Finance charge | The total dollar amount you pay for the use of credit |
| Gross pay | Total earnings before deductions |
| Income tax return | A form on which you report how much money you received from working and other sources of income as well as the exact taxes you owe (if any) |
| Liquidity | Ability to convert your financial resources into cash without loss of value |
| Interest | Periodic charge in exchange for the use of credit |
| Insurance | Protectiion against possible financial loss |
| Large Cap Stock | Stock of a corporation that has issued a large number of shares of stock and has a large amount of capitalization (500 million) |
| Liabilities | The debts that you owe |
| Inflation | The rise in level of prices |
| Insolvency | When liabilities are greater than your assets |
| Municipal bond | A security issued by a state or local government to pay for special projects or ongoing activities. |
| Policy | An insurance contract that is purchased. |
| Net worth | Difference between the amount you own and the debts you owe. |
| Mutual fund | Investment alternative in which investors pool their money to buy stock, bonds, and other securities based on the selections of professionals. |
| Maturity date | The date when a bond will be repaid. |
| Net pay | The total earnings paid to an employee after payroll taxes and other deductions. |
| Opportunity cost | What you give up when you make one choice instead of another. |
| Minimum Monthly Payment | The smallest amount you can pay and remain a borrower in good standing. |
| Portfolio | Consist of all the securities held by an investor. |
| Salary | Employees that work for a contracted amount of money for one year of work. |
| Simple interest | Interest computed only on the principal (I=PRT). |
| Principal | The amount of money that you borrow. |
| Rate of return | The percentage of increase in the value of your savings from earned interest. |
| Policyholder | The purchaser of an insurance policy. |
| Renters insurance | Type of insurance that covers loss of a tenant's personal property as a result of damage or theft. |
| Social Security tax | A federal tax paid for old-age survivors and disabiltiy |
| Social SEcurity tax rate | 6.20% |
| W-4 | Form an employee completes before beginning work that has marital status and number of allowances |
| Sublet | Have a persoan other than the original tenant take over the rental unit and payments for the remaining term of the lease |
| Uninsured Motorist | Insurance that covers you and your family members if you are involved in an accident with an uninsured or hit and run driver |
| Withholding | Takes out (social security, and income tax payments) from your paycheck and sends money to the IRS |
| Types of Endorsements | Blank, restrictive, special |
| 1040EZ | the simplest type of income tax return that can be filed with the IRS |
| 5 C' of credit | Character, capital, capacity, collateral and credit history |
| Annunity | equal regular deposits into a saving/investing account |
| Appreciation | when an asset increases in value |
| Checking Account | A demand deposit account |
| Collision Insurance | they type of car insurance you need when you are involved in an accident to fix your car |
| Comprehensive Insurance | the type of car insurance you need to fix your car from damage other then being in an accident |
| Credit | buy now pay later |
| Credit Bureau | 3 major agencies that report a persons credit worthiness |
| Deductable | the amount you pay out of pocket before insurance kicks in an pays their part |
| Depreciation | when an asset decreases in value |
| Direct Deposit | when your pay check in automatically put into your checking account by electronic transfer |
| Disability Income Insurance | provides money when you are unable to work because of injury or illness |
| Emergency Fund | $1000 first and then 3-6 months of living expenses |
| FDIC | Insures money in banks against theft or bank failure up to $250,000 per account |
| Forclosure | when you default on your home loan and the bank takes possession of your house |
| i=prt | the simples interest formula |
| Interest Income | unearned income that your money makes for you in the form of interest |
| Liability | debts that you owe |
| Liability Insurance | the type of car insurance that is required by law to protect the other person in an accident that you cause |
| Life Insurance | Everyone who has dependents needs this to help care for them after they are gone |
| Long term goals | goals that take more than 1 year to accomplish |
| Money Market | A "fancy" savings account that has a higher minimum balance and limits the number of transactions per month |
| Overdraft protection | service provided by the bank to make your check or debit card swipe "good" even without enough funds in your account |
| Overtime | working more than 40 hours per week, normally you make time and a half |
| Point of sale transaction | When you can pay for a good or service with the swipe of some type of card (debit, credit or gift) |
| Premium | The amount the insured pays each month for the right to have insurance coverage |
| Reconcilliation | to bring your bank statemetn and your check register into agreement with one another |
| Regular earnings | regular rate x regular earnings per hour |
| Revenue | money coming into a business or family |
| Risk | Accident, theft, damage, destroyed unexpected |
| Rule of 72 | determines how long it will take your money to double at a certain interest rate |
| Short Term goals | goals that can be accomplished in less than one year |
| Speculative Investment | the most risky types of investments, options, future, and collectables |
| Standard deduction | The amount the IRS that everyone gets to deduct from their income tax return |
| Stock | equity capital, the sale of ownership in a company |
| Tax audit | a detailed examination of your income tax return by the IRS |
| Tax rate | the percentage amount that is used to calculate social security and medicare |
| Tax refund | when you have over paid the IRS and you get money back after you file your income tax return |
| US Bond | to loan the US government money that they will repay in the future with interest |
| Variable expense | expenses that change from month to month based on use (water, utilities, gas) |
| W-2 | Form completed by the employer that provides detailed information about your earnings and taxes for the previous year |
| W-4 | completed by the employee, to provide infomation about marital status and allowances |
