| A | B |
|---|
| depreciating asset | An asset that decreases in value over time |
| down payment | a sum of money you pay on a loan up front |
| mortgage | a type of loan used to buy property |
| interest | the fee paid on borrowed principal or money |
| budget | a plan for spending and saving the money you receive |
| retirement accounts | IRAs, Roth IRAs, 401(k)s and 403(b)s |
| Rule of 72 | a method of figuring out how long it will take to double your money |
| compound interest | the sum of the original principal or money and an accrued amount of interest |
| routing and account number | numbers listed at the bottom of a check |
| credit union | a type of financial institution that is run by its members |
| checking account | bank account that offers the easiest access to your money |
| grace period | the amount of time you have after making a purchase before interest is applied |
| cash advance | when you use your credit card to obtain a cash loan |
| credit score | a numerical rating that represents the perception of how likely you are to pay your debts |
| debit cards | connected to the funds in your bank account |
| FICO score | The most commonly used credit score in the US. |
| home loan | an example of good debt |
| deductible | the amount you pay on each insurance claim |
| consumer protection laws | protect consumers from unfair or deceptive selling practices |
| share of stock | represents partial ownership in a company |
| Diversification | spreads your investment risk |
| wasting assets | decrease in value |
| "Fixed" expenses | rent, car payment |
| net pay | your earnings after taxes and other deductions |
| installment credit | requires equal monthly payments |
