TERMS #1
A depository institution that is licensed to receive deposits and establish loans
What is a BANK?
The knowledge and application of various financial skills
What is FINANCIAL LITERACY?
Specific objectives to be accomplished through financial planning
What are FINANCIAL GOALS?
The money received for work or through investments
What is INCOME?
The percentage of a loan or deposit amount that is charged by a lender or paid to a depositor over a specific period
What is INTEREST RATE?
Borrowed money that is expected to be paid back with interest
What is a LOAN?
The additional amount paid for borrowing a sum of money
What is INTEREST?
When a bank covers a transaction if someone has insufficient funds in their checking account
What is OVERDRAFT PROTECTION?
A written order to a bank to pay a person or business a certain amount of money
What is a CHECK?
A report of deposits, withdrawals, and bank balances sent to a depositor by a bank
What is a BANK STATEMENT?
A bank card that automatically deducts the amount of a purchase from your checking account
What is a DEBIT CARD?
A specific type of loan that is used to buy real estate
What is a MORTGAGE?
All tangible and intangible things an individual owns that provide future economic benefit
What is an ASSET?
The money you earn from your job before taxes
What is GROSS INCOME?
A financial plan for earning and spending money over a period of time
What is a BUDGET?
A bank card that is used to make purchases with the agreement that the cardholder will ultimately pay back the cost of the items purchased
What is a CREDIT CARD?
Money owed by one person to another person
What is DEBT?
A computerized cash payment system that transfers funds without the use of checks, currency, or paper documents
What is an ELECTRONIC FUND?
The money you earn from your job after taxes
What is NET INCOME?
A bank account that allows you to make deposits and write orders to withdraw money
What is a CHECKING ACCOUNT?
The initial amount of money invested or borrowed
What is the PRINCIPAL?
The maximum amount of credit a financial institution extends to a client on a credit card
What is a CREDIT LIMIT?
An automatic deposit of paychecks without having to take a physical check to the bank
What is a DIRECT DEPOSIT?
A bank account where you can store money safely while earning interest
What is a SAVINGS ACCOUNT?
How quickly and easily assets can be accessed and converted into cash
What is LIQUIDITY?