| A | B |
|---|
| Budget | A written cash flow plan |
| Cash Flow Statement | A summary that shows total income and spending for a given time period |
| Carbon Check | A copy of each check you write |
| Envelope System | Series of envelopes that are divided into categories (food, entertainment, gas, etc.) and are used to store cash for planned monthly expenses |
| Impulse Purchase | An item that is bought without previous planning or consideration of the long-term effects |
| Overdraft | Occurs when money is withdrawn from a bank account and the available balance goes below zero |
| Reconcile | To match your bank statement with your checkbook |
| Zero-based Budget | A cash flow plan that assigns an expense to every dollar of your income, wherein the total income minus the total expenses equals zero |
| Annual fee | A yearly fee that is charged by the credit card company for the convenience of the credit card |
| Annual percentage rate (APR) | Cost of borrowing money on an annual basis; takes into account the interest rate and other related fees on a loan |
| Credit card | Type of card issued by a bank that allows users to finance a purchase |
| Credit report | A detailed report of an individual's credit history |
| Credit score | A measure of an individual's credit risk; calculated from a credit report using a standardized formula |
| Debt snowball | Preferred method of debt repayment; includes a list of all debts organized from smallest to largest balance; minimum payments are made to all debts except for the smallest, which is attacked with the largest possible payments |
| Depreciation | A decrease or loss in value |
| Introductory rate | An interest rate charged to a customer during the early stages of a loan; the rate often goes up after a specified period of time |
| Loan term | Time frame that a loan agreement is in force, and before or at the end of which the loan should either be repaid or renegotiated for another term |
| Tax deduction | An expense, such as a charitable contribution, that can be deducted from one's taxable income |
