Terms 1
What is the name of the computer terminal that dispenses the amount of available money of your choice?
ATM
A government fee on business and personal income, activities, and products. Example: it's taken out of your paycheck or added to your purchases
Tax
We are learning how to be financially _ _ _ _ _ _ _ _.
literate
Charge levied against a client for not paying a bill on time (by the agreed due date).
Late fee
An investment in a share of a company that is sold to the public.
Stock
Deposit
An organized spending plan for income and expenses over a period of time. (Tip: you did two of these with the job wheels last month.)
Budget
What is the main difference between a bank and a credit union?
A) A C.U. is privately owned and a bank is publicly owned
B) A C.U. is not-for-profit and a bank is for-profit
C) You must meet a specific characteristic to belong to a bank
B) A credit union is not-for-profit and a bank is for-profit.
A plastic card used for purchases of goods and services for future payment
credit card
An investment where you lend money to a government or business to be paid back plus interest at a specific date
Bond
A qualified investment professional that helps people and businesses meet long-term financial goals
Certified Financial Planner
The extra amount added to a loan. (Tip: You make extra if you are lending money and you pay extra if you are borrowing money.)
Interest
Why is your credit score important?
A) It determines what type of job you will get.
B) It determines how much money you pass onto your beneficiaries.
C) It determines whether you will be allowed to borrow money.
C) It determines whether you will be allowed to borrow money.
A business that specializes in obtaining payments from debtors who have defaulted on their loans.
Collection Agency
An investment with specific tax advantages, defers taxes on earnings until withdrawal
IRAs (Individual Retirement Accounts)
Amount of time that a creditor allows before charging extra fees
grace period
A long-term loan to buy real estate, land, etc. The most common ones are 30-years.
Mortgage
Which of the following is not an asset?
A) Your home
B) Your car
C) Your credit card
D) Your stocks
C) Your credit card. (The more that you use it, the more that you owe!)
A numerical measure of a person's history of paying debts on time
Credit score
Spread money across many different types of investments. ("Don't put all your eggs in one basket.")
Diversify
When taking out more money than you have in your checking account, the bank charges this fee
Overdraft
A rise in value or price.
Appreciation
Why is it important to pay OVER the minimum toward your credit card bill?
Because the credit card interest will ensure that the credit card bill takes a VERY long time to pay off. (Other similar answers may be acceptable!)
a debt that is past due because a borrower has not made a scheduled payment. This can happen with credit cards, loans, mortgages, or rent.
Delinquency
An investment tool that pools many shareholders and invests it in a diversified portfolio of stocks, bonds, and other assets
Mutual funds