Upgrade to remove ads
Terms in this set (35)
A banking service allowing a customer's money to be handled and tracked. Common bank accounts are savings and checking accounts.
Automated Teller Machine (ATM)
A specialized computer used by bank customers to manage their money, for example, to get cash, make deposits, or transfer money between accounts.
The amount of money in your account that you can use or withdraw. Your available balance may not reflect all transactions that you have made, for example checks you have written that have not yet been paid from your account.
Bad or bounced check
See non-sufficient funds
A financial institution that handles money, including keeping it for saving or commercial purposes, and exchanging, investing, and supplying it for loans.
A written order instructing the bank to pay a specific amount of money to a specific person or entity. The check must contain a date, payee (person, company, or organization to be paid), amount, and an authorized signature.
A bank account that allows a customer to deposit and withdraw money andwrite checks. Using a checking account can be safer and more convenient than handling cash.
When the banks pays a check you have written and then subtracts the amount form you account, your check has "cleared" the bank.
A non-profit financial institution that is owned and operated entirely by its members. Credit unions provide financial services for their members, including savings and lending. Large organizations may organize credit unions for their members, and some companies establish credit unions for their employees. To join a credit union, a person must ordinarily belong to a participating organization, such as a college alumni association or labor union. When a person deposits money in a credit union, he or she becomes a member of the union because the deposit is considered partial ownership in the credit union.
A card linked to a checking account that can be used to withdraw money and make deposits at an ATM and to make purchases at merchants. When you use a debit card, the money will be deducted from the linked checking account.
To put money into your account.
A deposit made directly into your account by the payer without the use of a check or deposit slip. Typical direct deposits include Social Security payments and automatic payroll deposits.
Electronic Funds Transfer (EFT)
Allows you to have funds electronically transferred into your account(s) such as deposit of your payroll check, tax refund or social security check.
To sign the back of a check, authorizing the check to be exchanged for cash or credit.
Federal Deposit Insurance Corporation (FDIC).
An independent agency of the United States government that protects customers from the loss of their deposits if an FDIC insured financial institution fails.
Companies such as banks, credit unions, and savings institutions that provide a wide range of money management products and services to consumers. Financial institutions collect funds from the public and place them in financial assets, such as deposits, loans, and bonds.
A form of Electronic Funds Transfer which allows you to send money to families and friends outside of the United States from your accounts.
The amount of money paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time.
Line of credit
An arrangement by which a lender extends a specific amount of credit to a borrower for a certain time period. As long as the borrower repays the principal with interest, he or she can continue to borrow against the line of credit during the agreed upon time period. A line of credit can be unsecured or secured. This is also called a credit line.
Allows an individual to access their financial accounts through a web browser on their mobile device such as cellular phone.
A document issued by a post office, bank, or convenience store ordering payment of a specific sum of money to an individual or business. There is generally a small charge for purchasing a money order.
National Credit Union Administration (NCUA) .
An independent federal agency that charters and supervises federal credit unions and insures savings in federal and most state-chartered credit unions.
Non-sufficient funds (NSF).
The lack of enough money in an account to pay a particular check or payment. Also known as insufficient funds. A check with insufficient funds may be returned unpaid to the person cashing it. This has a negative impact on the check writer's history of handling his or her account, and may prevent opening of future accounts.
When there is not enough money in an account to cover a transaction and the bank pays it on your behalf, creating a negative balance in the account that you need to repay.
Offered by many banks, overdraft protection is a service that automatically transfers money from a linked account that you select, such as a savings or credit account, when you don't have enough money in your checking account to pay your transactions.
Personal Identification Number (PIN)
A secret combination of letters or numbers you use to gain access to your account through an electronic device such as an ATM.
When you use a debit card to make a purchase from a merchant at a store, by telephone, or through the internet.
This is also known as "non-sufficient funds" or a "bounced check." If you spend more money than you have in your checking account, the bank may return the transaction unpaid and charge a fee.
A bank account that allows a customer to deposit and withdraw money and earn interest on the balance.
A financial Institution that accepts deposits from individuals, makes homes mortgage loans, and pay dividends.
A monthly accounting document sent to you by your bank that lists your account balance at the beginning and end of the month, and all of the checks you wrote that your bank has processed during the month. Your statement also lists other deposits, deductions, and fees, such as service charges.
A period of time over which a loan is scheduled to be repaid. For example, a home mortgage may have a 30-year term, meaning it must be repaid within 30 years.
An agreement between a buyer and seller to exchange an asset for payment. In accounting, a transaction is any event recorded in the written financial records, also called the accounting books.
A register that allows you to keep accurate records of your deposits and withdrawals. Use your check and/or savings register to record every deposit and withdrawal you make.
To take money out of an account.
THIS SET IS OFTEN IN FOLDERS WITH...
Financial Literacy - Dudgeon Final Exam
Financial Literacy Vocab #2
YOU MIGHT ALSO LIKE...
Principles of Economics
Unit 1 Vocabulary
OTHER SETS BY THIS CREATOR
Chapter Eight Vocabulary
Chapters 1-5 Vocabulary
Protecting Yourself Financially