Budgeting & Banking
This is the "take-home" amount on your paycheck after taxes are removed.
Net Pay
This three-digit number determines your trustworthiness to lenders.
Credit Score
The "Magic of ____ Interest" allows your money to grow on top of itself over time.
Compound
This is the deadline date for filing your federal tax return each year.
April 15
The fixed amount you pay out-of-pocket for a claim before insurance kicks in.
Deductible
This rule suggests spending 50% on needs, 30% on wants, and 20% on savings.
50/30/20 Rule
This acronym stands for the total cost of borrowing money annually, including fees.
APR
A strategy that involves spreading your money across different assets to lower risk.
Diversification
This tax form is filled out by employees so employers know how much to withhold.
W-4
The monthly or annual fee you pay just to keep your insurance policy active.
Premium
Experts recommend having 3–6 months of expenses in this specific type of fund.
Emergency Fund
Unlike a credit card, this type of card pulls money directly from your checking account.
Debit Card
An investment that represents partial ownership in a specific corporation.
Stock or Share
Social Security and Medicare taxes are collectively known by this four-letter acronym.
FICA
This type of life insurance covers you for a specific period (e.g., 20 years) and is usually cheaper.
Term Life
A "fixed expense" stays the same; this type of expense changes month to month (like groceries).
Variable Expense
This legal process allows a person to discharge their debts but ruins their credit for 7–10 years.
Bankruptcy
An employer-sponsored retirement plan where they might "match" your contribution.
401(K)
You receive this form in January from your employer showing your total earnings for the year.
W-2
In car insurance, this specific coverage pays for damage to your car if you hit a tree.
Collision
This occurs when you spend more money than is available in your checking account.
Overdraft
This is the highest possible FICO credit score you can achieve.
850
A "Market" named after this animal occurs when stock prices are falling.
Bear Market
The U.S. uses this type of tax system, where higher earners pay a higher percentage.
Progressive Tax
This legal document names the person who receives your life insurance payout.
Beneficiary