| A | B |
|---|
| Emergency Fund | $500 in a readily available cash that can be used in a crisis |
| Interest Rate | Percentage paid to a lender for the use of borrowed money |
| Debt | An obligation of repayment owed by one party to a second party |
| Sinking Fund | Saving money over time for large purchases |
| Budget | A written cash flow plan |
| Impulse Purchase | Buying an item without previous planning |
| Credit | The granting of a loan and the creation of debt |
| Debt Snowball | Method of debt repayment; included |
| Grant | Federal or State Financial Aid that does not have to be repaid |
| Opportunity Cost | The financial chance that is given up because you choose to do something else with your money |
| APR | Cost of borrowing money on an annual basis |
| Marketing | The process of communicating the value of a product or service to customers |
| Financial Literacy | The knowledge and skillset necessary to be an informed consumer and manage finances effectively |
| Envelope System | Series of envelopes used to store cash for planned monthly expenses |
| Compound Interest | Interest paid on interest previously earned |
| Interest | A fee paid by the borrower to the lender for the use of borrowed money |
| Depreciation | A decrease or a loss in value |
| Buyers Remorse | Feeling regret or conern after a purchase |
| Work Study | Program that allows students to work part time to help pay for their tuition/fees |
| Credit Score | A measure of an individual's credit risk |
| Reconcile | Process of comparing your bank statement with your checkbook register |
| Scholorship | Financial aid that is usually awarded by a school based on academic, athletic, or other acheivments |
| Significant Purchase | An amount of money you spend that causes some pain to part with |
| FAFSA | A form that is completed to determine their eligibility for financial aid. |
| 20,80 | 20% Knowledge & 80% Behavior |
| Negative Savings Rate | Spending more money than you make |
| Fixed Expense | Expenses that remain the same from month to month. Examples: Rent, Cable Bill |
| Intermittent Expense | Expenses that occur at various times throughout the year. Ex: Tuition Payment, Car Repairs |
| Variable Expense | Expenses that vary from month to month. Ex: Electricity, Gas |
| Discretionary Expenses | Expenses for things we don't need. Ex: Eating Out, Gifts |
