Financial Literacy

46 terms by nova77 

Create a new folder

Advertisement Upgrade to remove ads

Financial opportunity

An opportunity to make money

Rate of return

The return on an investor's capital. Also called Yield. Expressed in a percentage

Investment

money that is invested with an expectation of profit

Revenue

The total amount of money made.

Net income

Also called profit. Calculated as the Revenue - Expenses

Budget

A plan of incoming and outgoing monies. Expense and Income.

Expenses

an expense is an outflow of money to another person or group to pay for an item or service, or for a category of costs.

Net Worth

The difference between your total assets and total liabilities

Income Statement

a financial document that shows how much money (revenues) came in and how much money (expenses) was paid out

Principal

The money originally invested or loaned, on which basis interest and returns are calculated

Interest

a fixed charge for borrowing money; usually a percentage of the amount borrowed; "how much interest do you pay on your mortgage?"

Simple interest

interest paid on the principal alone

Compound interest

interest calculated on both the principal and the accrued interest

Credit rating

an estimate, based on previous dealings, of a person's or an organization's ability to fulfill their financial commitments

APR

Annual Percentage Rate

APY

Annual Percentage Yield

Yield

The rate of return received for one whole year, including the compound interest.

CD

Certificate of Deposit

FDIC

Federal Deposit Insurance Corporation

Bankruptcy

A legal determination that an individual or corporation is unable to pay debts.

Expenditures

Act of expending or paying out; An amount expended; an expense; an outlay

Credit Card

A plastic card issued by a bank authorizing payment for purchases. Interest is charged on the outstanding balance.

Mortgage

An agreement to repay a loan with interest over a certain period by the owner of a property to the mortgagee.

Default

nonpayment: loss resulting from failure of a debt to be paid

Parent Company

A company that owns a majority interest in another company (subsidiary) and controls management and operations of that subsidiary.

divergent thinking

a type of thinking that is associated with creativity - seeing lots of solutions to a problem

Return on Investment

return on invested capital: (corporate finance) the amount, expressed as a percentage, that is earned on a company's total capital calculated by dividing the total capital into earnings before interest, taxes, or dividends are paid

Percentage Gain

loss or profit on an investment, expressed in a percent

Amortization

the reduction of the value of an asset by prorating its cost over a period of years

Amortization Schedule

a table detailing each periodic payment on an amortizing loan (typically a mortgage), as generated by an amortization calculator.

Down Payment

a partial payment made at the time of purchase; the balance to be paid later

Equity

the part of a house that you own, what you have paid for

Foreclosure

the proceeding, by a creditor, to regain property or other collateral following a default on mortgage payments

Condominium

a building in which each unit is owned by an individual but the grounds

Real Estate

real property: property consisting of houses and land

Ethical Investment

describes an investment strategy which seeks to maximize both financial return and social good

Affluenza

always trying to keep up with the next guy material wise

Consumerism

the act of consuming

Consumption

burning through resources because of consumption

Start-up expenses

when starting a new business, the expenses to start

Profit & Loss statement

statement that shows profit or loss

Balance sheet

assets, liabilities and equity as of a specific date

Cash flow sheet

shows where all the money is going, entering and leaving

Dividend

that part of the earnings of a corporation that is distributed to its shareholders

Commodity

anything that can be traded (gold, wheat, stocks, etc0

brent crude oil

is the biggest of the many major classifications of oil consisting of Brent Crude

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions above and try again

Example:

Reload the page to try again!

Reload

Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

Star this term

You can study starred terms together

NEW! Voice Recording

Create Set