| A | B |
|---|
| Long-term goal | something a person or org. plans to achieve at least 5 years in the future |
| Short-term goal | something a person or org. plans to achieve within a one-year time period |
| Intermediate goal | something a person or org. plans to achieve between a one to five year period |
| 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 particular 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 |
| Simple Interest Calculation | Interest = Principal x Rate x Time |
| Compound Interest | Interest that is earned not only on the principal but also on the interest already earned |
| Rule of 72 | mathmetical equation determining the number of years it wil take for an investment to double |
| Time Value of Money | The value of a sum of money at a different time (expressed as future value of a sum when the present amt., rate of interest or return, and maturity are known) |
| Bank | Financial institution that provides various products and services to its customers, inc. checking and savings accts, loans and currency exchange |
| Broker | Individual who provides investment services to other individuals such as assisting in the buying and selling of stocks, bonds, and other investment instruments |
| Certificate of Deposit | Certificate issued by a bank to a person depositing money in an account for a specified period of time. Penalty is charged for early withdrawal from CD accounts |
| Check | Written order to a financial institution directing them to pay a stated amount of money, as instructed, from the customer's account |
| Checking Account | A financial account into which people deposit money and from which they withdraw money by writing checks |
| Consumer Loan | A loan made to an individual or household for purposes of buying or paying for a consumer good (car, appliance, furniture, etc.) |
| Credit Union | A nonprofit financial institution owned by its members; offers various financial services including accounts and loans; regulated by the National Credit Union Administration (NCUA) |
| National Credit Union Administration | Federal agency that regulates credit unions and administers the insurance fund that insures member credit unions' deposits. Depositors' accounts with member credit unions are insured up to $250,000 |
| Deposit | Money put into a financial account. |
| Federal Deposit Insurance Corporation | A federal agency that guarantees depositors' savings up to $250,000 per account in most commercial banks, savings banks and savings associations |
| Pay-day Loan Company | A loan issued to a borrower who writes a post-dated check made out to a lender specializing in payday loans) for the amount he or she wishes to borrow plus a fee. |
| Savings Account | An interest-bearing account (passbook or statement) at a financial institution |
| Savings and Loan | A type of financial institutions that specializes in but not restricted to lending money to consumers for mortgages |
| Automated Bill Payment | A process that allows consumers to make regular bill payments from their banking accounts using electronic methods such as consumers and arranged drafts |
| Automated Clearing House (ACH) | An electronic network for financial transactions in the U.S. This network processes batches of debits and credits to various financial institutions allowing for fast, safe, and efficient transfer of funds |
| Automated Teller Machines | A mcahine that provides cash and performs banking services (for deposits and transfers of funds between accounts, for example) |
| PIN | Used with a card placed in an ATM to access the banking information network to transfer cash, receive cash, purchase groceries, etc. |
| Check 21 | An act of congress that allows banks to sue and transmit digital images of checks rather than transport paper checks for return |
| Checking Account | A financial account into which people deposit money and from which they withdraw money and from which they withdraw money by writing checks or using an ATM or debit card |
| Credit Cards | A small, specially coded plastic card issued by a bank, business, etc., authorizing the cardholder to purchase goods or services on credit |
| Debit Card | A small, specially coded plastic card issued by a bank; allows the cardholder to transfer funds electronically and immediately from his or her checking account, as if the cardholder were writing a check to pay for a purchase |
| Direct Deposit | The electronic transfer of a payment (for a month's salary, for example) directly from the payer's account to the recipient's account |
| Loans | An amount of money provided by one party to another with the understanding that the money will be returned, in full, often with interest |
| Remote Deposit | The process of depositing funds from a home or office without visiting a financial institution. |
| Savings Account | An interest-bearing account (passbook or statement) at a financial institution. Funds are accessed by withdrawing funds at the institution or at an ATM or debit card.. |
| Bank Account | An arrangement in which a bank holds funds on behalf of a depositor. Funds may be credited to and subject to withdrawal by the depositor. |
| Bank statement | A monthly summary providing the status of a depositor's financial accounts |
| Check register | A form (usually included in the checkbook) on which users of checking accounts records checks they have written and deposits they have made |
| Checking account | A financial account into which people deposit money and from which they may withdraw money by writing checks or using a debit card |
| Signature card | A document bearing a person's signature, held on file in a financial institution |
| Great Depression | Period of time from 1929 to 1939. It was a series of recessions characterized by high unemployment, falling prices and large numbers of bank failures |
| Panic of 1907 | A financial crisis brought about by an attempt tro corner the copper market. Collapse of the market led first to widespread bank failures |
| First Bank of the United States | Founded in 1791 |
| Second Bank of the United States | Founded in 1816 |
