Banking
A check that has been paid or cleared by the bank. It will appear on your bank statement
What is a canceled check?
A mortgage in which the initial interest rate is normally fixed for a specified period of time after which it is reset periodically, often every month
What is adjustable-rate mortgage
A group of financial instruments which have similar financial characteristics and behave similarly in the marketplace (like stocks, bonds, and cash)
What is asset class
A plan of your expected income and how you will use it to meet your expected expenses over a period of time
What is a budget
The maximum amount an insurance company will pay if you file a claim
What is coverage limit
A written, dated, and signed order to the bank that tells it to pay a definite sum of money to a payee
What is a check?
A yearly fee that may be charged for having a specific credit card, independent of how you use the card
What is an annual fee
Dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash
What is asset allocation
A budgeting method that allocates 50% to needs, 30% to wants, and 20% to savings and debt repayment
What is a 50/30/20 budget
Auto insurance that protects you against costs to repair your own vehicle after a crash
What is collision coverage
The amount of money you have in your bank account
What is balance?
A type of loan where you borrow money from your retirement savings account. You must pay that borrowed money back, plus interest, within 5 years of taking your loan, in most cases.
What is a 401(k) loan
Buying and selling investments - typically individual stocks and funds - within a short time frame (from seconds/minutes to days/weeks) in hopes of making quick profits from the small price changes. Research shows that 95% of active traders lose money.
What is active trading
Items or services you pay for such as rent, groceries, entertainment, bills, etc.
What are expenses
A person who compiles and analyzes statistics to calculate risk and determine insurance rates and premiums
What is an actuary
A business that cashes checks and gives the customer cash in exchange for a fee for the service
What is a check cashing store
A person who has permission to use and/or carry another person's credit card, but isn't legally responsible for paying the bill
What is an authorized user
An account that lets individual investors trade stocks, bonds, mutual funds, and other investments
What is a brokerage account
A strategy where you save a specified amount of your paycheck before doing anything with the rest of your money
What is pay yourself first
Health insurance that provides protection against the high cost of treating severe or lengthy illness or disabilities and usually has a high deductible and lower premiums
What is catastrophic health insurance
An application that runs on mobile devices. It securely stores your payment information and passwords and allows you to pay for items without needing your physical cards.
What is a digital wallet
Something valuable that the lender can take as payment if you can't or don't repay your secured loan
What is collateral
A low-fee portfolio of stocks chosen to track or mimic a stock market index, thereby removing the human element of investing because no one is choosing the individual stocks
What is an index fun
The cost for one item or measurement that allows it to be easily compared to other similar products to evaluate which is a better deal
What is unit price
Children's Health Insurance Program. A program that provides low-cost health coverage to children in families who earn too much money to qualify for Medicaid