| A | B |
|---|
| short-term needs | require money beyond your current paycheck |
| long-term needs | require a lot of money mainly provided from investments |
| financial security | confident and prepared for future household needs and wants |
| principal | amount of money deposited by the saver |
| interest | earnings on a savings account |
| compound interest | interest computed on the original principal plus interest already earned |
| simple interest | interst computed on the amount saved only |
| liquidity | how quickly you cna turn your savings into cash when you want it |
| maturity date | the date on which an investment becomes due for payment |
| discretionary income | amount left over after all bills have been paid |
| save | setting aside money to meet future needs |
| CD | a desposit earning a fixed interest rate for a specified length of time |
| savings account | An account similar to a checking account that grows interest |
| money market aaccount | A deposit account offered by a bank, which has a relatively high rate of interest and typically requires a higher minimum balance to earn interest or avoid monthly fees |
