| A | B |
|---|
| Budget | a report outlining a person's expenses with his/her income |
| FICO score | a number that indicates good or bad credit, high score=good credit |
| interest | The amount charged to you for borrowing money |
| APR-Annual Percentage Rate | the interest (%) charged to you for taking out a loan |
| Grace period | the time given to you to pay credit bills without incurring a finance charge |
| Finance charge | THe extra amount in dollars and cents added to your credit bill when it isn't paid in full |
| Identity Theft | The crime that occurs when someone steals your SS#, personal info |
| Asset | Items a business or individual owns of value |
| Bankruptcy | Financial failure, legally declared unable to pay your bills |
| Depreciation | the loss of an item's value over time, example=car |
| Garnishment | a court order allowing creditors to seize part of your wages to collect $ owed them |
| Principal | The amount borrowed before interest is applied |
| Mortgage | The debt owed on property (home or building) |
| credit card | allows people to buy items without paying upfront |
| debit card | money is withdrawn from your checking account with a simple swipe of the card |
| security deposit | $ the owner/landlord holds in case the rent isn't paid or the property is damaged |
| closing costs | costs involved in arranging for the mortgage or in transferring ownership of the property |
| fraud | intentionally cheating someone out of his/her money |
| minimum payment | the lowest amount allowed to be paid on a credit card for the month |
| credit limit | the maximum amount that one is allowed to purchase on credit |
| Lease | a contract between the renter and the landlord listing the responsibilities of both |
| Capital gain | profit earned from the sale of stock |
| Savings account | money kept in a bank to accumulate interest, least risk, lowest return |
| IRA's | Individual retirement accounts meant to secure income for you when you retire |
| Mutual funds | putting $ with an investment company who will buy a variety of stocks and bonds |
| bull market | Stocks are going up in value |
| Bear market | Stocks are dropping in value |
| Dow Jones Average | Stock Market index tracking the stock value of 30 major industrial companies |
| S & P 500 | It tracks the stock prices of 500 companies |
| NASDAQ | Technology stocks sold in the electronic marketplace |
| Bonds | giving $ to a company with an understanding that you'd make interest on it |
| diversification | having different types of investment to lower overall risk |
