| A | B |
|---|
| Budget | A written cash flow plan |
| Cash Flow Statement | A summary that shows total income and spending for a given time period |
| Envelope System | Series of envelopes that are divided into categories (food, entertainment, gas, etc.) and are used to store cash for planned monthly expenses |
| Overdraft | Occurs when money is withdrawn from a bank account and the available balance goes below zero |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 |
| 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 |
| Diversification | The practice of dividing the money a person invests between several different types of investments in order to lower risk |
| Investment | Account or arrangement in which a person puts his/her money for long-term growth; invested money should not be used for a suggested minimum of five years |
| Liquidity | Quality of an asset that permits it to be converted quickly into cash without loss of value; availability of money. |
| Portfolio | A list of your investments |
| Risk | Degree of uncertainty of return on an asset; in business, the likelihood of loss or reduced profit |
| Risk Return Ratio | Relationship of substantial reward compared to the amount of risk taken |
| Share | Piece of ownership in a company, mutual fund, or other investment |
| Stocks | Securities that represent part ownership or equity in a corporation |
| Tax-Favored Dollars | Money that is invested, either tax-deferred or tax-free, within a retirement plan |
| Scholarship | A form of financial aid that does not need to be repaid; usually awarded on the basis of academic, athletic or other achievements |
| Grant | A form of federal or state financial aid that does not need to be repaid; usually given to students who demonstrate financial need |
| Branding | The promotion of a product or service by identifying it with distinct characteristics (usually associated with public perception, quality, or effectiveness) |
| Brand recognition | Refers to the public's ability to recall and recognize a brand by its logo, jingles, packaging, etc. |
| Buyer's remorse | Feeling regret or concern after making a large purchase |
| Financing | To buy an item with credit; paying over time |
| Opportunity Cost | Refers to the financial opportunity that is given up because you choose to do something else with your money |
| Significant purchase | An amount of money you spend, usually $300, that causes some pain to part with |
