The ability to obtain goods or services before payment, based on the agreement that payment will be made in the future.
What is credit?
100
Payable only to the individual who is named on the check.
What is a personal check?
200
Removing money from a person's account directly, typically as payment for a service or good.
What is debit?
200
A form that tells the employer the correct amount of tax to withhold from an employee’s paycheck.
What is W-4?
200
Interest calculated on the initial principal and also on the accumulated interest of previous
periods of a deposit or loan.
What is compound interest?
200
When a withdrawal from an individual’s account exceeds the current balance resulting in a fee often times incurred on each transaction overdrawn.
What is an overdraft fee?
200
The amount that you will pay out of your pocket when you file a claim.
What is a deductible?
300
A retirement savings plan offered by an employer where money is automatically taken out before each paycheck is taxed.
What is a 401K?
400
A number assigned to a person that indicates to lenders their capacity to repay a loan.
What is credit score?
400
A form that an employer must send to an employee and the Internal Revenue Service at the end of the year.
What is W-2?
400
A bank account where a fixed amount is deposited every month for a specific period and the total amount is repaid with interest at the end of the fixed period.
What is a recurring deposit account?
400
Policy purchased to cover losses of an insurance policy when the coverage is insufficient.
What is an Umbrella Policy?
500
Exemptions on tax forms where the more you claim, the less income tax will be withheld from your paycheck.
What is withholding allowance?
500
Leaving money untouched in your bank account for an extended period of time leading to higher interest rates that you will earn.
What is Certificate of Deposit?
500
A permanent insurance plan designed to provide lifetime coverage for beneficiaries. Often have relatively high premium payments.