Savings and interest
A bank account that earns a small amount of interest and is used to store money for future goals
Savings account
A plan for how to spend and save your money each month
A budget
An account that you use for everyday transactions, like paying for groceries
A checking account
An asset you own that can be used as collateral to secure a loan
What is secured debt
A portion of a company's earnings paid to its shareholders
What is a dividend
The concept where your money earns interest, and that interest then earns more interest over time
Compound Interest
The money you receive from a job or allowance, before any taxes or deductions are taken out
Gross Pay
A numerical rating that lenders use to assess how likely you are to repay borrowed money
A credit score
A type of investment that represents a loan you make to a company or government
a bond
The money you pay to the government to help fund public services like schools, roads, and social security
What are taxes
Money you put into a company, fund, or other asset with the goal of making a profit
Investment
The money you get to take home after taxes and other deductions are taken from your paycheck
Net Pay
An electronic card that deducts money directly from your checking account when you make a purchase
What is a debit card
The term for things you spend your money on, like bills or fun purchases
expenses
A form you receive from your employer that shows your yearly wages and how much was withheld in taxes
What is a W-2 form
A type of investment that represents a small piece of ownership in a company
What is a stock
The difference between things you must pay for, like rent, versus things you’d like to have, like video games
What are needs vs wants
The money a credit card company charges you for borrowing their money if you don't pay your balance in full each month
What is interest
The total value of all your assets (what you own) minus your liabilities (what you owe)
What is net worth
A special tax on goods or services, like sales tax or gas tax
What is an excise tax
A simple investment strategy involving putting your money into a broad index that tracks the market, proven to beat most active traders
index investing
A financial strategy where you set aside a portion of your income for savings before you pay any bills or other expenses
Paying yourself first
This is the result of spending more money than you have in your checking account
A overdraft fee
This person or institution lends you money that you agree to pay back, usually with interest
A lender
A reduction in the amount of income tax you have to pay, often for certain qualified expenses
A tax deduction or credit