Financial Literacy 1
The amount of time given to pay your balance in full before you are charged interest on what you owe.
Grace Period
Credit History
Person or organization that takes out loan under agreement to pay it back, usually with interest.
Borrower
Yearly interest rate charged on credit product.
Annual Percentage Rate
Card issued by a lender that gives the cardholder the ability to borrow money by making purchases.
Credit Card
The smallest amount of money a cardholder can pay to remain in good standing.
Minimum Payment
Something pledged as security for repayment of a loan.
Collateral
Credit
The maximum amount of money you can borrow on a credit card.
Credit Limit
Something valuable or useful
Asset
Something you owe.
Liability
Assets minus Liabilities
Networh
Money owed by others that is backed by collateral.
Secured Debt
Unsecured Debt
Money Owed to others that is not backed by collateral
Fixed Expense
Cost that occur each period and the amounts that does not change
Costs that do not occur on a consistent basis
Irregular expense
Costs that occur each period and the amounts change from one period to the next
Variable expense
Fixed Income
Money a person receives that does not change from one period to the next.
Money a person receives that changes from period to the next
Money a person receives occasionally
Irregular Income
AJ lets DJ borrow $3000 but requires DJ to let him keep his mother's Lamborghini until he pays him back his money.
Secured Debt or Secured Loan
Prinicipal
The initial Amount of Money borrowed
Incentives you are given such as air miles, cashback, etc.
Credit Card Rewards
A fee for borrowing money expressed as a percentage rate
Interest
credit cards allow cardholders to withdraw cash from an ATM or financial institution up to certain limit.
Cash Advance