insurance
This type of insurance pays your bills (food, rent, gas, etc.) when you are hurt and you can't work.
disability insurance
An investment that is a share of ownership in a corporation
What is a stock
A for-profit corporation owned by shareholders that takes deposits and makes loans and offers checking accounts.
What is a bank?
This includes all the records of loans you have taken out and paid back over your life.
credit history
Expenses that do not change from month to month (like rent, mortgage, or car payment).
What are fixed expenses
This type of auto insurance covers the cost to repair your vehicle when you crash.
collision
An investment that is a loan to a corporation or a government
What is a bond
A non-profit membership organization that offers checking accounts, savings accounts, and loans.
What is a credit union?
This number is used by lenders to determine how much they charge you for interest on loans.
What is your credit score
Expenses that change from month to month (like food, entertainment, or vacation).
What are variable expenses
This type of life insurance covers you for only a fixed period of time
What is term life insurance
This is an investment that pools money from many people and uses the money to buy many stocks and/or bonds
What is a mutual fund
The interest rate that you use to compare different loans with different characteristics.
What is annual percentage rate
This type of financial institution charges much higher interest rates on loans than banks or credit unions.
What is a consumer finance company
These taxes are taken out of your paycheck by the federal government and used to provide income to elderly people
What is Social Security
This is the name of the money you pay every month to have an insurance policy.
premium
This is a type of tax deferred retirement account that you control. You don't pay taxes on the income from it until after you retire
What is an IRA
A type of interest that grows not only on the principal but also on all accumulated interest over time.
What is compound interest?
This type of loan has no interest if paid back after a month. If you're stupid enough not to pay it back in a month, you pay compound interest compounded monthly.
What is a credit card loan
These taxes are taken out of your paycheck and used to pay for elderly people's health care.
What is Medicare
This is the money you pay out of pocket when you need to use insurance.
deductible
This is an investing technique in which you spread your money around different types of investments.
What is diversification
This government agency guarantees your deposits in a bank up to $250,000.
FDIC
Property that is used by a lender to secure a loan (the bank takes the property if you don't repay the loan).
What is collateral
Your wages AFTER taxes and deductions.
net wages