Saftey Net
This is the fixed amount you pay out-of-pocket for a covered health service before your insurance provider starts to pay.
What is a deductible?
This is the initial payment made when buying a home, usually expressed as a percentage of the total price.
What is a down payment?
This term describes the decrease in a car's value over time due to wear and tear.
What is depreciation?
Financial experts recommend saving 3–6 months of expenses in this type of account for "rainy days."
This is the act of giving money, goods, or time to help a cause or organization.
What is charitable giving?
This type of insurance is often required by law if you own a vehicle and covers damages to others if you are at fault.
What is Liability insurance?
A legal agreement that allows you to occupy a property for a set period in exchange for rent.
What is a lease?
This is a long-term rental agreement for a car where you return the vehicle at the end of the term.
What is a lease?
This is the concept where you earn interest on both your original money and the interest you've already gained.
If you give to a registered 501(c)(3) organization, your donation may provide this benefit during tax season.
What is a tax deduction?
If you rent an apartment, this type of insurance protects your personal belongings from theft or fire.
What is renters' insurance?
The name for a loan specifically used to purchase real estate.
What is a mortgage?
Besides the monthly payment and gas, this "M" word is a recurring cost to keep a car running safely.
What is maintenance?
This common retirement account is often offered by employers, sometimes with a "matching" contribution.
What is a 401k?
This is the term for giving your time and skills to a cause without receiving any payment.
What is volunteering?
This term refers to the monthly or annual fee you pay just to keep your insurance policy active.
What is a premium?
Unlike renting, owning a home allows you to build this—the difference between the home's value and what you owe on it.
What is equity?
This is the maximum amount of money a lender will give you for a car based on your credit score and income.
What is a loan limit?
This strategy involves spreading your money across different types of investments to reduce risk.
What is diversification?
A permanent fund established by an individual or group to provide long-term, ongoing financial support to a non-profit.
What is an endowment?
This specific type of life insurance only provides coverage for a set period (like 10 or 20 years) and is usually more affordable for young families.
What is Term Life insurance
These are extra costs paid at the end of a real estate transaction, including fees for appraisals, titles, and taxes.
What are closing costs?
When a car is worth less than the amount you still owe on the loan, you are said to be "underwater" or have this.
What is negative equity?
This "Rule" is a quick way to estimate how many years it will take for your savings to double at a specific interest rate.
What is the Rule of 72?
This "proportional" style of giving involves donating a specific percentage (often 10%) of one's income.
What is tithing?