Basic Budgeting
A number that combines multiple months of spending, allowing your budget to be more accurate.
What is AME (average monthly expenditure)?
The card that comes with your checking account that allows for purchases without a check.
What is a debit card?
Also called a transaction account, this bank account is for everyday purchases and money management.
What is a checking account?
The process of checking your records against the banks records.
What is reconciliation?
The period where interest is compounded twice a year.
What is semiannual?
Spending more money than you budgeted.
What is a budget deficit?
Moving money from one bank account to another.
What is a balance transfer or account transfer?
This type of account puts distance between your spending and saving, and gives you a small amount of interest.
What is a savings account?
A measure of how easily an asset can be converted to cash.
What is liquidity?
The type of account where you deposit the same amount of money every period, and interest is earned.
What is an annuity?
An expense that doesn't vary from month to month.
What is a fixed expense?
The signature on the back of a check.
What is an endorsement?
This type of account locks your money away for a set amount of time and pays higher amounts of interest.
What is a CD?
When you spend more money than you have in your bank account.
What is weekly?
The type of expense that is charged once per year.
What is an annual expense?
A type of bank with members that functions as a non-profit.
What is a Credit Union?
This type of bank account combines features of the other accounts, but has limited transactions per month, and higher minimum balances.
What is an MMA?
The type of annuity where you wait a period to earn interest is called this.
What is an ordinary annuity?
What is the type of compounding where there is an infinite amount of periods, and you are always generating a little bit of interest. The best you can earn in a compounding account.
What is Continuous Compounding?
The type of expenses that included shelter, clothes, food, and other necessities.
What are living expenses?
The government agency that operates as a bank for banks, and monitors the money supply.
What is the Federal Reserve Bank?
List all 4 types of bank accounts discussed in class in order of how easy it is to access your money.
1. Checking
2. Savings
3. MMA
4. CD
The amount your emergency fund should contain.
What are 3 to 6 months of expenses?
Please give the formula for compound interest.
What is A=P(1+r/n)^nt