| A | B |
|---|
| Savings | What people usually do to meet short-term goals. |
| Investing | You're setting your money asside for longer-term goals. |
| Time Value of Money | Refers to the relationship among time, money, and rate of interest. |
| Inflation | A rise in the cost of goods and services over time. |
| Earned Interest | The payment you receive for allowing a financial institution or corporation to use your money. |
| Compound Interest | Idea of earning interest on interest. |
| Dividends | Share of the profits you receive as a stockholder. |
| Stock Market | The place where stocks are bought and sold. |
| Capital Gains | The difference between the purchase price and the selling price. |
| Capital Loss | If an investor ends up selling a stock at a lower price. |
| Rate of Return | The annual percentage return on an investment. |
| Savings Account | Bank account that earns a small amount of interest. |
| Bond | A formal agreement where the borrower, (the federal government) can use your money for a set period of time and (you, the lender will get paid) a specific amount of interest in return. |
| Liquid Asset | Means that it can be easily converted into cash. |
| U. S. Savings Bond | Federal Government pays interest to investors for loaning its money. |
| MMDA | Money Market Deposit Accounts |
| Interest | Principal x Interest Rate x Time |
| Stock | Means you own a part of the company. |
| Maturity Date | date on which a loan must be paid. |
| Annual Percentage Rate (APR) | indicates how much credit costs you on a yearly basis. |
| Time Factor | length of time for which interest will be charged. |
