Personal Finance
A tradeoff, what you give up when you make one choice instead of another
Opportunity Cost
The bank’s record of all the transactions in a checking account in a given month
Bank Statement
The risk that the rate of inflation will increase more than the rate of interest on savings
Inflation Risk
Expenses that change and can be controlled more easily than fixed expenses
Variable Expenses
Checks that have been written but not yet cashed
Outstanding Checks
The interest earned on both the principal and any interest earned on the principal
Compound Interest
The total amount of money you earn for a specific time before any deductions are taken out of your pay
Gross Pay
A record of a checking account holder’s signature used to verify identity
Signature Card
Percentage of increase in the value of your savings from earned interest
Rate of Return
The difference between the budgeted amount and the actual amount you spend
Budget Variance
When a checking account owner has written checks for more money than the balance in the account
Overdrawn
The date when a CD’s money becomes available to you
Maturity Date
Extra money, after expenses are paid, that can be spent or saved, depending on a person’s goals
Surplus
The signature of the payee on the back of a check. The signature is necessary in order to cash or deposit the check.
Endorsement
The ability to quickly turn an investment into cash
Liquidity