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Terms in this set (18)
Pay yourself first
set aside a portion of money from each paycheck
for saving before using any of the money for spending
Time value of money
money paid out or received in the future is
not equivalent to money paid out or received today
giving up one thing for another
the portion of income not spent on current expenditures
committing money or capital to something (a
business, project, real estate, etc.) with the expectation of
obtaining an additional income or profit
an account provided by a bank for individuals to
save money and earn interest on the cash held in the account.
Certificate of Deposit
Insured interest earning savings tool
that allows restricted access to your money.
Money Market Account
an interest-bearing account that typically
pays a higher interest rate than a savings account, and which
provides the account holder with limited check-writing ability.
a share of ownership in a company
a loan given to a company or government by an investor.
collection of stocks or bonds or a combination of
both stocks and bonds
Federal Deposit Insurance Corporation (FDIC)
the U.S. corporation
insuring deposits in the United States against bank failure.
Rule of 72
a way to determine how long an investment will take to
double, given a fixed annual rate of interest.
The price paid for using someone else's money.
The price paid for using someone else's money
expressed as a percentage.
Basic amount deposited, without adding
Interest earned on the principal and paid out
to a depositor.
is interest calculated on the initial principal
and also on the accumulated interest on the
previous periods of a deposit (or loan).
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