Financial
Decision-Making
Decision-Making
The "price" you pay for using someone else's money, or the money you earn for letting a bank use yours. (this grows over time)
What is Interest?
A payment card issued by financial institutions that provides a revolving line of credit, allowing you to borrow funds up to a set limit to pay for goods, services, or cash advances.
What is a Credit Card?
A piece of ownership in a company
What is a Stock?
An individual or company that owns real estate including houses, apartments, condos, or land and rents or leases it to another party, known as a tenant, in exchange for payment, usually in the form of rent.
What is a Landlord?
The government agency responsible for collecting taxes and enforcing tax laws.
What is the Internal Revenue Service (IRS)?
This is a written plan for where your money will go each month to ensure expenses don't exceed income
What is a Budget?
Unlike a credit card, this card takes money directly out of your checking account immediately.
What is Debit Card?
The strategy of spreading your investments in multiple different sectors and industries to minimize risk?
What is Diversification?
This is the money you pay upfront to a landlord to cover any potential damages to the unit; you (hopefully) get it back when you move.
What is a Security Deposit?
This term refers to the tax on profit made from selling an asset, like a stock, for more than you paid for it.
What is Capital Gains Tax?
The economic principle where prices rise and the purchasing power of your dollar falls over time
What is Inflation?
This three-digit number tells lenders how likely you are to pay back a loan.
What is a Credit Score?
This type of retirement account allows your money to grow tax-free, and you don't pay taxes when you withdraw it later.
What is a Roth IRA?
The initial payment made when buying a home, usually expressed as a percentage of the total price.
What is a Down Payment?
This form is filled out by an employee so the employer knows how much tax to withhold from their paycheck.
What is a W-4?
The practice of comparing the price of products or services from different vendors before buying.
What is Comparison Shopping?
This specific type of interest is calculated on the initial principal and also on the accumulated interest of previous periods
This is the primary location where physical stocks are traded in the United States
What is New York Stock Exchange? (Wall Street)
The legal process by which a lender takes control of a property after the borrower fails to make payments.
What is Foreclosure?
A dollar-for-dollar reduction in the actual tax you owe, which is more valuable than a deduction.
What is a Tax Credit?
What federal agency sets and enforces safety standards for food, drugs, and cosmetics?
What is Food and Drug Administration (FDA)
A type of loan where you provide an asset (like a car or house) as collateral.
What is a Secured Loan?
An investment that pools money from many people to buy a variety of stocks or bonds.
What is a Mutual Fund?
Most financial experts suggest your housing should cost no more than this percentage of your monthly income.
What is 30%?
The date that federal income tax returns are usually due in the United States.
What is April 15th?