17 terms
Saving
50-20-30 Rule
A popular savings rule of thumb in which 50% of your income goes towards necessities, 20% goes towards saving and debt repayment, and 30% goes towards flexible spending
Certificate Of Deposit (CD)
A savings certificate with a fixed interest rate and maturity date, holding the saver's money until the CD fully matures
Compound Interest
Interest earned on both the principal amount and any interest already earned
Direct Deposit
An automatic electronic deposit of net pay to an employee's designated bank account
Emergency Fund
Money set aside for unanticipated expenses or loss of income
Federal Deposit Insurance Corporation (FDIC)
The U.S. corporation insuring deposits in US banks against bank failure
Health Savings Account (HSA)
An account in which you can save pre-tax dollars to pay for out-of-pocket health care expenses
Inflation
The rate at which the price of goods increases and consumer purchasing power decreases over time
Interest
The amount you earn as the benefit of depositing money in an interest bearing account
Money Market Savings Account
An account similar to a traditional savings account but that typically pays higher interest, requires a higher minimum balance, and may allow check writing
National Credit Union Administration (NCUA)
The U.S. administration insuring deposits in U.S.credit unions against credit union failure
Online Savings Account
A savings account, typically offering higher interest rates, that is managed entirely online with no physical bank branch
Pay Yourself First
A method of saving whereby you put a fixed amount of income into a savings account before you pay monthly bills or make purchases
Principal
Original amount of money saved or invested, separate from interest or earnings
Simple Interest
Interest paid on the principal alone
Rule Of 72
A popular trick to find out how long it will take your money to double depending on what interest rate you are receiving
Wealth
A measurement of your assets (money you've saved or things of value you own) minus your liabilities (money you owe others); also called net worth