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77 Cards in this Set

  • Front
  • Back
a plan for saving and spending your money
1. List Earnings & Calculate Income 2. Record for 1-2 months all spending
3. Categorize all expenditures
4. Calculate total monthly spending on spreadsheet
4 Steps for a Good Budget
Costs you must pay monthly like rent, car payments, mortgage payments on house, etc.
Fixed Expenditures
Wants that you don't have to spend money on
Discretionary Spending
An account agreement with a bank that allows one to deposit and withdraw money safely & is insured by FDIC
Checking Account
thrifty or not wasteful
a booklet in which you'll record your account transactions
Check Register
Compareing the transactions in the bank statement to your own records to make sure they agree. Use worksheet on back to help you do this.
Balancing Your Checkbook
the lowest amount of funds that can be in your account before incurring a service charge.
Minimum Balance
a record of your checking account activity during the last month which lists deposits, withdrawls, ATM transactions, interest paid & fees charges
Bank Statement
a bank account used for savings that you may need to use within a short period of time; all deposits, withdrawls, fees, and interest will be recorded by your account
Savings Account
money earned through deposited funds or the price paid for borrowed money
allows you to save and write a limited number of checks; earns higher interest than savings account but requires more fees and higher minimum balance; has a variable interest rate ( + / - )
Money Market Account
offers a guaranteed interest rate for a fixed period of time; the longer the term, the higher the rate of interest earned; penalty fees apply to withdrawls before maturity
time deposits
a federal law that requires banks to provide you with certain information about thier accounts: APY, interest rates, fees & other charges, & features like minimum balance needed to avoid feeds
Truth in Savings Act
bank charges for services or privileges given to customers
an IOU issued by a corporation or government as a way for them to borrow money
an investment that represents ownership in a corporation
portions of a corporation's profits paid to stockholders
the profit you make if you can sell your stock for more than you paid for it
Capital Gain
earns dividends dependent on market fluctuations
Common Stock
earns dividends fixed at an annual rate; 1st to be paid out
Preferred Stock
legal term for one who is adjudged insolvent; unable to pay one's debts
an investment in an investment company which sells stock & take money received for stock & invest it in stocks/bonds of other corporations
Mutual Funds
high-risk investments have potential for high returns while low-risk investment will yeild low returns
"Risk vs. Payout"
any organization that loans/invests money for its customers
financial institutions
provides checking, saving, and money market accounts and accept deposits for individuals & businesses
( Certificate of Deposit)
Commercial Banks
originally intended to promote savings and home financing but deregulation allowed expansion of their services
Savings & Loan Associations
accept deposits and specialize in low-risk investments like government bonds
Savings Banks
nonprofit banks owned by their members, usually employees of a single organization such as a company or trade union
Credit Unions
a steel box kept in a bank's vaults that can be rented to protect a customer's valuables
Safe Deposit Box
employ stock brokers who can buy or sell stock for its clients
Brokerage Firms
provided by insurance companies to allow a customer's savings to be tax-free for a period of time; may allow loans against one's insurance policy
Tax-Deferred Savings
loans, credit cards and other methods of deferred payment
people who lend you money at a cost of interest
money owed a creditor
Capacity, Capital, Character & Collateral
"Four Cs of Credit"
organization providing information on individual's borrowing & bill-paying habits
Credit Bureau
Fair Isaac Company provides information on individual's credit risk by a numerical score; >720 is good
FICO Score
property used to secure a loan
a card allowing an individual to defer payment for an interest fee; an unsecured loan
charge card
a card used to withdraw money from a bank account
debit card
interest accrued on, and fees charged for, some forms of credit
finance charges
money borrowed from banks which are either single-payment/signature or installment requiring collateral
a number that tells you what your credit will cost; a finance charge expressed as an annual rate
Annual Percentage Rate (APR)
some interest rates will not change but other rates may rise or fall with the prime rate or other economic indicator changes
Fixed vs. Variable Interest Rates
require institutions issueing loans to tell you the exact finance charge of your loan; ex. Fair Credit Reporting Act & Billing Act
Truth In Lending Laws
the cost of enrolling in courses at a school
"free money" given to applicants as students with "exceptional financial need" or minority groups
"free money" given to applicants as students who excell in academic or athletic skills or for specific fields; ROTC programs offer merit-based money to pay for tuition, fees, books & offer a monthly living allowance in return for military service after graduation
colleges offering programs that provide on-campus jobs for students receiveing financial aid; federally funded
Work-Study Program
have a low interest rate and a generous repayment schedule; may be subsidized by government & payment is deferred until graduation
education loans
Free Application for Federal Student Aid form used to calculate your Expected Family Contribution for tuition
Federal government's central location for aid information and on-line filing run by Dept. of Education
Project EASI
the loss in value of a car as soon as it is purchased and driven; 1/2 value after 3 yrs. then 3% loss per year
Auto Depreciation
the bank can take the collateral on a loan if the installment payments are not made; ex. the car or house purchased
magazine that compares the quality and durability of commercial products for the consumer's benefit in selection
Consumer Reports
a contractual agreement between a landlord and renter of an apartment; lease
Rental Agreement
lodging acquired through a lease based on monthly payments including security deposit, and a one to two year committment
Apartment Rental
a rental agreement between a landlord and a tenant
a sum of money you pay the landlord to ensure that you will leave the apartment in the same condition you found it in
security deposit
a binding legal agreement to you and your landlord; both have rights & responsibilities under the law
a bet between you and your insurance company based on formulas of probable risk; you pay the premiums hoping you will have no problem while they pay costs of an injury/illness /accident/ or damage to property
a sum of money paid to an insurance company usually monthly in return for the companies compensation for an accident/injury; varies by type of auto policy ie. liability, no-fault, collision or comprehensive
an amount of expenses you must pay before the insurer will cover any expenses; ex. $500 deductible means you pay the 1st $500 and
the amount paid for damaged property; may cover replacement cost or only actual cash value at the time of accident
the percentage of each doctor visit/procedure that the patient must pay for services
a document summarizing your employment experience, education, and other information a potential employer wants to know
Resume, Cover Letter, Identifying Job Openings & Interviewing
4 Tools for Employment
allowed for a federal income tax to defer costs of WWII
16th Amendment
agency within the Treasury Dept. that interprets and applies federal income tax laws passed by Congress
Internal Revenue Service
federal, state & local taxes; Progressive Tax rises based on income, Proportional Taxes are in proportion to income, and Regressive Taxes decrease as income increases
Types of Taxation
must be completed to tell how much money to have withheld from your paycheck when starting a new job
Form W-4
a form will be sent you in January or February from any employers that withheld taxes on you; Save! for filing with your tax return
W-2 Form
more complicated tax forms allowing you to declare deductions from taxable income
Tax Deductions (F 1040A / Standard 1040)
a simple form for unmarried people with no children
1040 EZ ( Short Form)
Tax deadline for Federal Income Tax ( or you are penalized & may be audited)
"April 15th" Annually