Terms in this set (40)
A deposit at a bank or savings and loan that pays interest, but cannot be withdrawn in check writing.
The amount paid for use of borrowed money.
This is the amount of money you borrow in a loan. You pay this back plus interest.
To put money into a bank or investment account.
The cost of borrowing money, expressed as a percentage, usually over the period of one year.
Interest which is calculated not only on the initial principal but also the accumulated interest of prior periods.
The use of savings to earn a financial return.
To take more money out of an account than is available in the account. You write a check for $25.00, but your account contains only $20. You will have to pay the bank a penalty charge for going over the limit.
A way of measuring. The number 100 (which stands for the whole amount) is usually divided into 100 smaller, but equal, parts, each called a percent. So a percentage usually refers to a certain number of parts within the whole. Therefore, 6% is 6 units out of 100% (the whole). If you have invested $100, and you earn 8% interest on the money, you will earn 8 parts of the whole, or $8. A percentage explains a number in relation to the whole.
1) In talking about loans, the balance is the difference between the amount owed and the amount paid. If you pay $45 on a $100 debt, your balance is $55. 2) In talking about checkbooks, balancing means to account for all money that came into and went out of your account, so that at the end of the month you and your bank statement agree. 3) In talking about savings, your balance is what is left in your savings account after you deposit or withdraw money.
To protect yourself from loss. You pay premiums (payments) to an insurance company who, in turn, agrees to pay for losses to your property (house, car, jewelry, etc.) or your person (in case of injury). You can buy insurance that protects you even when you cause a loss to other people. For example, you cause a car accident.
When you take your money out of your bank account.
Things you pay money for, both needs and wants.
This is an electronic banking station that enables people to take care of banking business 24 hours a day, 7 days a week. You can deposit and withdraw money, pay loans, etc., at most ATMs.
How quickly an asset (any item of value that you own) can be turned into cash. In other words, you don't have to wait until a certain date or pay a penalty to withdraw your money.
Bank or Debit Card
This plastic card looks like a credit card, but it is used to withdraw money from a savings or checking account. When you use a debit card at Automatic Teller Machines or in stores to make purchases, money is immediately withdrawn from your account. You cannot withdraw more money than you have in the account.
Established as part of the Banking Act of 1933, the Federal Deposit Insurance Corporation (FDIC) protects bank customers from possible losses by insuring various kinds of savings accounts up to $100,000 per account.
Money or goods you owe.
Money or an object that is lent, usually with the understanding that the loan will be paid back, usually with interest.
A paper copy, proof that a paycheck has been electronically deposited in a bank account; an employer sends employees earnings statements to confirm that a paycheck has been electronically deposited in the employee's bank account.
A measure of a person's ability and willingness to make credit payments on time.
A number, generally between 300 & 800, reflects the credit history shown in a borrower's credit report.
Social Security Number
A federal taxpayer identification number for Americans. A SSN number is required to get a job and claim taxes or other tax benefits.
A legal process to get out of debt when you can no longer make all your required payments.
An agreement that a borrower gives a lender in return for the lender giving a loan for the purpose of buying property.
The fee that credit-card companies charge when you pay you bill past the due date.
The total dollar amount a person pays to use credit.
The process of spreading one's assets among several different types of investments in order to reduce risk.
An example of Long- term savings might be saving to buy a car or pay for college. You need months or years to save this amount of money. People invest long-term for many, many years, for retirement, for example.
1) an IOU issued by a corporation or government that confirms you are lending the corporation or government money. Bonds pay interest regularly to lenders. At the end of the term of the bond, the borrower returns to the lender the face value of the bond (the amount the lender invested in the bond)
A person that owns or holds a share or shares of stock in a company
The money you've earned after you subtract a) any money you had to spend to make the product or perform the service. B) any taxes that had to be paid on your earnings.
An open-ended fund operated by an investment company which raises money from shareholders and invests in group assets, in accordance with a stated set of objectives. Need the essentials or basics of life.
Certificate of Deposit. A type of investment that requires you to invest money for a certain length of time and guarantees the same rate of return for that entire time. CDs usually require a minimum deposit.
An instrument that signifies an ownership position (called equity) in a corporation, and represents a claim on its proportional share in the corporation's assets and profits.
The amount of your income or paycheck after any deductions like taxes or insurance payments are subtracted. This is your take-home pay.
The entire amount of your income or paycheck before any deductions like taxes or insurance payments are subtracted.
Money that wage earners pay the government to run the country. The amount of the tax depends upon how much you earn.
The comprehensive federal program of benefits providing workers an their dependents with retirements income, disability income, and other payments. The Social security tax is used to pay for the program.
People buy health insurance to help them pay for medical expenses like going to the doctor, prescription drugs.
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