How can we help?

You can also find more resources in our Help Center.

46 terms

Financial Literacy

STUDY
PLAY
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