| A | B |
|---|
| Automated Teller Machine (ATM) | A machine that allows individuals to complete certain transactions from the machine without human assistance |
| Checking Account | An account that allows quick access to funds for transactions |
| Commercial Bank | For‐profit depository businesses that offer financial services to both consumers and other businesses |
| Contactless Payment | Payment transactions that can be completed with no physical connection between the payment device and the physical point of sale (POS) terminal or store clerk |
| Credit Union | Depository institutions that offer many banking services and are owned by their customers |
| Debit Card | A plastic card that is electronically connected to the cardholder’s depository institution |
| Depository Institution | Businesses that provide financial services |
| Interest | The price paid for using someone else’s money |
| Interest Rate | The percentage rate used to calculate interest |
| Mobile Banking | Apps that many depository institutions have developed that allow online banking access from devices such as smartphones, tablets and other mobile devices |
| Online Banking | Allows customers to complete certain transactions from a secured Internet site by using a username and password from any place in the world with Internet access |
| Savings Account | An account at a depository institution that is designed to hold money not spent on current consumption |
| Savings Tool | Accounts offered by depository institutions whose main purpose is to help people manage their money |
| Financial Goals | Specific objectives that are accomplished through financial planning |
| Financial Planning | Managing money continuously through life in order to reach your financial goals |
| Financial Well‐Being | Managing money in ways that build a sense |
| Well‐Being | Feeling good about one’s life |
| Needs | Goods or services that are required for survival |
| Opportunity Cost | The value of the next best alternative that must be forgone as a result of a decision |
| Trade‐Off | Giving up one thing for another |
| Asset | Items of monetary value a person or household owns |
| Expense | Money spent |
| Income | Money received |
| Investment Asset | Financial assets purchased with the hope that they will generate income and appreciate in value to make it possible to sell at a higher price in the future |
| Liability | A debt or obligation owed to others |
| Market Value | The amount you could realistically sell an asset for today |
| Monetary Asset | Assets that can be quickly and easily converted into cash |
| Net Worth | A measure of financial wealth and indicates the monetary value of all possessions that a person or household owns, minus the total amounts owed to others |
| Statement of Financial Position | A financial statement that describes an individual or family’s financial condition on a specified date by showing assets, liabilities, and net worth |
| Tangible Asset | Personal property that was purchased to create a lifestyle or improve your life |
| Wealth | A measurement of how much a person or household owns once all debts have been paid. |
| Community | A group of people with common interests and concern for the common good |
| Excise Tax | Taxes collected from the seller or retailer and as such often remain “hidden” in the price of a product or service, rather than being listed separately. |
| Income Tax | A tax on earned and unearned income |
| Payroll Tax | A tax on earned income. |
| Property Tax | A tax on property, such as land, buildings (including homes), and automobiles. |
| Sales Tax | A tax on purchased goods and services. |
| Taxes | A sum of money demanded by a government to support the government itself as well as specific facilities or services. |
| Taxpayer | A person who pays a tax to national, state, county or municipal governments |
| Unearned Income | Income received from sources other than employment |
| Income and Expense Statement | Lists and summarizes income and expense transactions that have taken place over a specific period of time, usually a month or year |
| Insurance | A product that transfers risk from an individual to an insurance company or organization. |
| Mortgage | A payment, usually monthly, applied to the balance of a home loan used when purchasing housing. |
| Net Gain | When income is greater than expenses. |
| Net Income | Take home pay. |
| Net Loss | When expenses are greater than income. |
| Savings | The portion of current income not spent on consumption |
| Spending Plan | An income and expense statement sometimes referred to as a budget which records both planned and actual income and expenses over a period of time. |
