Credit
Credit card
The ability to get stuff before payment and the payment will be made in the future.
Gross pay
Is the amount of money you make before taking away.
Roth IRA
An individual retirement account that offers tax-free growth and tax-free withdrawals in retirement.
Stock market
Describe all the buying and selling of stock shares issued by a company.
Bond
A security in which the investor loans money to a company or government, which then pays regular interest to the bondholder and returns the principal on the bond’s maturity date.
Debt card
A card is provided as a service by a bank that allows one to take out money that replaces cash and checks.
Net pay
Is how much money you make after taking away.
Traditional IRA
A type of individual retirement account that lets your earnings grow tax-deferred. You pay taxes on your investment gains only when you make withdrawals in retirement.
Stock
A share of the value of a company, which can be bought, sold, or traded as an investment and which gives the investor small partial ownership of the company.
Coupon
The annual interest payment on a bond is usually expressed as a percentage of its face value.
Grace period
A free period that allows you to avoid paying interest by paying your current balance in full before the due date.
Variable
Inconsistent cost that depends on the choice you make.
Social Security
Eplaces a percentage of a worker's pre-retirement income based on your lifetime earnings.
Diversification
Owning a collection of investments like (stocks, large, or small companies, etc) to spread risk and have a safe overall investment.
Bond fund
An investment vehicle that invests primarily in bonds (government, municipal, etc) and other debt.
Schumer Box
An easy-to-read table or box that tells the rates, fees, terms, and conditions of the credit card agreement.
Recurring
These are the types of expenses or purchases that happen throughout the month.
Brokerage accounts
An investment account that allows you to buy and sell a variety of investments, such as stocks, bonds, mutual funds, and ETFs.
Stock split
When a company increases the number of its shares, the value of the company remains the same.
Individual bonds
Defined amount of income that you have to pay every six months/twice a year.
Interset
The amount you own as the cost of borrowing money.
50/20/30
50% of your net income should go to your needs, 20% should go to savings, and 30% should go to your wants.
Risk tolerance
The level of risk an investor is willing to take.
Index funds
A type of mutual fund that attempts to copy the performance of a stock market index.
Reducing expenses
Decreasing a company's expense to increase profit.