9 Week Course - Key Vocabulary
Terms in this set (70)
The form that determines the percentage of an employee's pay that will be withheld for federal taxes.
A summary of the income you earned during the year and all amounts the employer withheld for taxes.
The standard Internal Revenue Service (IRS) form that individuals use to file their annual Federal income tax returns.
Amounts subtracted from gross income that is withheld by an employer for items like taxes and employee benefits.
Amount of income left after taxes and deductions have been taken out.
Amount of salary or wages earned for a certain period of time before deductions are withheld.
The taxable income and wages you get from working.
Money spent by consumers on non-essential items.
A person who relies on the taxpayer for financial support.
A loan or transfer made (with a fee) to an account if a check or debit is larger than the account balance.
An individual or household that does not utilize a checking or savings account and instead obtains financial services outside the traditional banking system
An online process that allows you to send money directly from your account to another person via email or app
An automatic deposit of net pay to an employee's designated bank account.
Federal Deposit Insurance Corporation: a federally sponsored corporation that insures accounts in national banks and other qualified institutions.
Interest earned on both the principal amount and any interest already earned.
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
A general increase in prices and fall in the purchasing value of money.
Certificate of Deposit
A savings account in which money is left on deposit for a stated period of time to earn a specific rate of return.
Money Market Account
A savings account that requires a minimum balance and earns a higher rate of interest than a traditional savings account.
Free Application for Federal Student Aid; determines how much federal financial aid a student may receive.
A form of financial aid that does not need to be repaid; usually awarded on the basis of academic, athletic or other achievements.
A form of financial aid that does not need to be repaid; usually awarded based on financial need.
Direct Subsidized Loans
A student loan that the federal government pays interest on as long as the student is in school at least half-time
Direct Unsubsidized Loans
A student loan where the student is responsible for the interest during the time they are in school, which means they must pay that interest while studying or have it rolled into their loan
A legal document in which you promise to repay your loan and any accrued interest and fees to the lender.
Estimated Family Contribution: an estimate of a student or parents' ability to contribute to post-secondary expenses.
Student Aid Report: this report summarizes the information entered on your FAFSA form,
and shows the amount of your Expected Family Contribution (EFC).
Failure to pay back a loan.
Allows you to temporarily pause your student loan payments for an approved reason. During this time, YOU are responsible for paying the interest that accrues on your loan.
Allows you to temporarily pause your student loan payments for an approved reason. During this time, you MAY NOT be responsible for paying the interest that accrues on your loan.
A credit arrangement, such as a credit card, that allows a customer to borrow against a line of credit when purchasing goods and services. The borrower is billed for the amount that is actually borrowed plus any interest due.
The amount of money borrowed.
The time duration of a loan.
The reduction of a loan balance through payments (towards principal and interest) made over a period of time.
A relatively small amount of money lent at a high rate of interest on the agreement that it will be repaid when the borrower receives their next paycheck.
A yearly fee that's charged by the credit card company for the convenience of the credit card.
Fair Credit Reporting Act
A federal law that established procedures that consumer-reporting agencies must follow in order to ensure that records are confidential, accurate, relevant, and properly used.
Equal Credit Opportunity Act
A law that protects consumers from discrimination in the granting or denying of credit.
A consumer request that requires the credit bureaus to deny all access to a consumer's credit information or files.
A security pledged for the repayment of a loan.
Fair Isaac Corporation: the largest and best known of several companies that provide software for calculating a person's credit score.
A time period during which a borrower can delay repayment on a loan. During this period, no late fees are charged, and the delay cannot result in default or cancellation of the loan or contract.
The rate of interest banks charge on short-term loans to their most creditworthy customers.
A share of ownership in a corporation.
A loan made by an investor to a borrower (usually corporate or governmental) that is promised to be repaid with interest by a certain date.
A fund that pools the savings of many individuals and invests this money in a variety of stocks, bonds, and other financial assets.
A mutual fund that was designed to reduce fees by investing in the stocks and bonds that make up an index.
A fee paid to a broker to execute a trade.
Dollar Cost Averaging
Investing the same amount of money on a regular basis regardless of market conditions.
The allocation of an investment portfolio across broad asset classes.
Spreading out investments to reduce risk.
Target Date Fund
A mutual fund that automatically resets the asset mix of stocks, bonds, & cash equivalents in its portfolio according to a selected time frame that is appropriate for a particular investor.
An individual retirement account allowing a person to invest after-tax income up to a specified amount each year. Both earnings on the account and withdrawals after age 59½ are tax-free.
An individual retirement account through which individuals direct pre-tax income that can be invested and grow tax-deferred.
An employer-sponsored retirement plan that allows eligible employees to invest on a tax deferred basis.
A company's share of profits to the shareholders based on the corporation's performance.
The chance of loss.
A monthly amount paid for an insurance policy.
A specified amount of money that the insured must pay before an insurance company will pay a claim.
Insurance that provides protection from claims arising from injuries or damage to other people or property.
An optional type of automobile insurance that covers your vehicle for damage caused by impact with another vehicle or object.
Protection against damages to your car from causes beyond your control, not including collision.
Protection against possible financial loss.
A document that describes the amount and type of coverage in an insurance agreement.
A person who receives benefit from a particular entity or person.
A plan for making and spending money.
Basic requirement for survival.
An item that we desire but that is not essential to survival.
A cost that does not change from month to month.
A cost that changes from month to month.
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