Credit
The smallest amount of a credit card bill that a credit card holder must pay during a billing cycle to remain in good standing with the lender
Minimum Payment
The tendency to conform to the behaviors and beliefs of the people around you
What is a herd mentality
Any items subtracted from your paycheck, including state and federal income taxes, Social Security, health insurance or 401(k) contributions
What is a deduction?
The amount of money you have in your bank account
Balance
Money that is received from work, investments, business, etc.
What is income?
The cost you pay each year to borrow money, including fees, expressed as a percentage
Annual Percentage Rate (APR)
The subfield of economics that applies psychological insights into human behavior and to explain economic decision making
What is behavioral economics?
A retirement savings plan, sponsored through your employer who will often match your contributions, that allows an individual to save for retirement
What is a 401K plan?
Automatic Teller Machine. Allows a person to manage a bank account holder's funds through actions such as withdrawing or depositing money, viewing account balances, etc.
What is an ATM?
A strategy where you save a specified amount of your paycheck before doing anything with the rest of your money
Pay Yourself First
A person who has permission to use and/or carry another person's credit card, but isn't legally responsible for paying the bill
Authorized User
The tendency to feel anxiety/fear that an exciting or interesting event may currently be happening elsewhere, often aroused by posts seen on a social media website
What is FOMO?
The extras an employer provides employees in addition to pay, such as health insurance or paid time off
What are benefits?
A bank product that earns interest on a lump-sum deposit that's untouched for a predetermined period of time
Certificate Of Deposit (CD)
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?
A three-digit number (ranging from 300-850) based on an individual's credit history detailed in a credit report
What is a credit score?
A subconscious error in thinking that leads to irrational decision making
Cognitive Bias
An automatic electronic deposit of net pay to an employee's designated bank account
What is Direct deposit?
Reinvesting earned interest back into the principal, so that interest is calculated on both the initial amount and the accumulated interest
Compound Interest
A budgeting method that allocates 50% to needs, 30% to wants, and 20% to savings and debt repayment
The number of days between a borrower's statement date and when payment is due, often without accruing interest
Grace Period
The tendency to make decisions about a current situation based on what resources you have already invested in the situation
What is the sunken cost fallacy?
A self-employed person who earns money on a per-job or per-task basis, often from different companies. They are considered an “independent contractor”.
What is a Freelance worker?
A written, dated, and signed order to the bank that tells it to pay a definite sum of money to a payee
Check
A cost that appears irregularly or that changes in amount (e.g., utility bills)
Variable Expense