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Financial Literacy Vocabulary

Terms in this set (26)

Annual Percentage Rate
The annual rate that is charged for borrowing
Certificate of Deposit
a certificate issued by a bank to a person depositing money for a specified length of time.
Checks
a written dated and signed paper that contains an unconditional order from the drawer that directs a bank to pay a definite sum of money to a payee.
Credit History
a record of a consumer's ability to repay debts and demonstrated responsibility in repaying debts.
Credit Limit
maximum amount a credit card company will allow someone to borrow on a single card
Credit Union
a nonprofit-making money cooperative whose members can borrow from pooled deposits at low interest rates.
Custodial Account
An account created at a bank, brokerage firm or mutual fund company that is managed by an adult for a minor that is under the age of 18 to 21
Deposit Slips
A small written form that is sometimes used to deposit funds into your account.
Federal Reserve
The central bank of the United States
Individual Retirement Account
An investing tool used by individuals to earn and earmark funds for retirement savings.
Budget
an estimate of income and spending funds for a period of time.
Expenses
the cost required for something
Fixed expenses
a cost that remains unchanged
Income
Money received
Overdraft
a deficit in a bank account caused by drawing more money than is actually in the account.
Periodic expenses
costs on an irregular basis.
variable expenses
direct costs
Account Register
a business relationship between a bank, department store, stockbroker, etc., and a depositor, customer, or client permitting the latter certain banking or credit services
Collection Agency
a company hired by lenders to recover funds that are past due or accounts that are in default.
Credit
the money lent or made available under a credit arrangement
Credit Card
a small, plastic card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit.
Debit Card
a card issued by a bank allowing the holder to transfer money electronically to anther bank account when making a purchase.
Financial Literacy
The possession of knowledge and understanding of financial matters. Financial literacy is also the ability to understand how money works in the world
Insufficient Funds
Occurs when an account cannot provide adequate funds to satisfy the demand of a payment
Teller
a person employed to deal with customers' transactions in a bank.
Savings Account
a bank account that earns interest
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