| A | B |
|---|
| long-term goal | something to be achieved at least 5 years in the future |
| short-term goal | something to be achieved within 1 year |
| conspicuous consumption | purchasing goods or services with the intent of having them seen by others, usually in an effort to signal status or wealth |
| interest | money paid regularly, at a specific rate, for the use of borrowed money |
| maturity | the length of time money is borrowed or invested |
| principal | an original amount of money invested or lent |
| compound interest | interest that is earned not only on the principal but also on the interest already earned |
| Rule of 72 | 72/interest rate=number of years it will take for the money to double |
| bank | a financial institution that provides various products & services to customers, including checking and savings accounts |
| broker | an individual who provides investment services to other individuals, assisting in the buying and selling of stocks, bonds, & other investments |
| Certificate of Deposit (CD) | issued by a bank to a person who desposits $ in an account for a specific time. Penalty applies for early withdrawal. |
| check | a written order directing a bank to pay a specific amount from a customer's account |
| checking account | a financial acount into which people deposit & withdraw money |
| consumer loan | a loan made for purpose of buying a consumer good like a car, refrigerator, etc. |
| credit union | nonprofit financial institution owned by members; regulated by N'tl Credit Union Assoc. (NCUA) |
| National Credit Union Assoc. (NCUA) | insures credit union members' accounts up to $250,000 |
| deposit | money put into a financial account (noun & verb) |
| Federal Deposit Insurance Corp. (FDIC) | federal agency guarantees depositors' savings up to $250,000 per account |
| pay-day loan company | borrower writes post-dated check to a lender in exchange for $ now. No credit check is made. HIGH interest rate & fees. |
| savings account | interest-bearing account |
| savings & loan | financial institution that specializes in lending $ for mortgages but may offer more |
| automated bill payment | process that allows consumers to make regular bill payments from their bank account using electronic methods |
| automated clearing house (ACH) | electronic network for financial transactions in the US. |
| automated teller machines (ATM) | machine that performs banking services when accessed w/ a PIN |
| Check 21 | Act of Congress that allows banks to transmit digital images of checks; more efficient |
| credit card | allows owner to purchase goods/services on credit |
| debit card | allow owner to transfer funds electronically from checking account as if a check were written to pay for goods/services |
| direct deposit | electronic transfer of a payment directly from the payer's account to the recipient's account |
| loans | an amount of money given to a borrower. Must be repaid with interest at a specific time |
| remote deposit | making a deposit electronically w/o visiting the fin. institution. Scan, transmit, deposit occurs. |
| bank statement | issued monthly by fin. instit. Shows balance, service fee, deposits & withdrawals |
| check register | form on which users record deposits & withdrawals from checking account |
| signature card | document showing account holder's signature; on file at fin. institution |
| reconciliation | bring into agreement the bank's account balance and your records |
| Panic of 1907 | financial crisis brought about by an attempt to corner copper market. |
| Great Depression | financial crisis brought by series of deep recessions. |
