| A | B |
|---|
| Compound Interest | Interest paid on interest previously earned; |
| Emergency Fund | Readily available cash used for unexpected expenses that could arise |
| Interest Rate | Percentage paid to a lender for the use of borrowed money |
| Budget | Written cash flow plan |
| Impulse Purchase | Item that is bought without previous planning or consideration as to long term effects |
| Overdraft | Occurs when money is withdrawn from a bank account and the available balance goes below zero |
| Credit Card | Card issued by a bank that allows users to finance a purchase |
| Credit Report | A detailing of an individual's history with borrowing |
| Credit Score | a numerical rating representing the perceived ability of a person or organization to fulfill their financial commitments |
| Depreciation | A decrease or loss in value, usually used in referring to a car |
| Tax Deduction | An expense such as a charitable contribution that can be used to decrease income for taxes |
| FAFSA | A form that is completed annually that is completed eligibility for student aid |
| Grant | A form of federal or state financial aid that does not need to be repaid, based on student need |
| Scholarship | Form of financial aid that does not need to be paid, usually based on athletic or academic achievement |
| Financing | To buy an item with credit and paying over time |
| Foreclosure | legal process by which a lender seizes and sells a home or property after a borrower is unable to meet their repayment obligation. |
| Diversification | The practice of dividing the money a person invests to a number of places in order to spread out risk |
| Co-Payment | Amount of money you pay to cover a portion of your medical costs |
| Liquidity | How quickly an asset can be converted to cash |
| Portfolio | A list of your investments |
| Stock | Securities that represent part ownership in a corporation |
| Bond | A promise by a borrower to pay a lender their principle plus interest on a loan |
| Mutual Fund | An investment vehicle made up of a pool of money collected from many investors to invest into stocks |
| Certificate of Deposit | A savings account that holds a fixed amount of money for a fixed period of time |
| Annuity | Insurance contracts that provide a fixed income stream through a person's lifetime |
| Traditional IRA | Type of account in which pre-tax contributions are used to grow and withdrawals are taken tax-deferred |
| Roth IRA | Type of account in which post-tax contributions are used to grow an account and withdrawals are tax-free |
| 401K Plan | Retirement savings vehicle sponsored by an employer |
| Claim | Paperwork filed with an insurance company in order to get a loss covered |
| Deductible | Amount paid before any insurance benefits kick in |
| Liability | Legal responsibility for an accident or injury to another |
| Premium | Amount paid monthly/quarterly to purchase insurance |
| Will | A legally enforceable document that declares where assets are distributed upon death |
| Comprehensive | Covers car damage that is not caused by collision |
| Collision | Covers damage to your vehicle as a result of an accident |
