Vocabulary
Adding or putting money into an account.
Deposit
A sum of money that is expected to be paid back with interest
Loan
A card issued by a bank, business, etc., allowing the holder to purchase goods or services that must be paid at a later date.
Credit card
What is the meaning of value?
Value is what a good or service is worth
Name 2 “pros” and 2 “cons” of possessing a credit card.
Pros- get what you need, build credit history
Cons- pay fees/ finance charges, get into debt
Taking money out of an account.
Withdrawal
a number assigned to a person that indicates to lenders their capacity to repay a loan.
Credit score
all the money and property owned by a particular person
Estate
Jamal started a landscaping business. He earns money each week mowing lawns, pulling weeds, and trimming hedges. He is paid by the hour. The money he earns is called:
Income
A plan for how to save and spend money.
Budget
Name 2 things that can affect your credit score
a) number of open accounts
b) late payment history
c) no credit history
What is a checking account?
Money kept for every day expenses.
An individual’s income before taxes are paid is called
Gross Income
Find the interest: P: $5,000. R: 5% T: 4 Years
$1,000.00
Extra money that you either earn or owe.
Interest
An arrangement by which a company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium
Insurance
Why is it important to make a budget?
A budget helps plan your spending.
Define the term "Net Worth"
Assets minus liabilities
a pool of money collected from a "money manager" to invest in securities like stocks, bonds to produce capital gains or income for the fund's investors
A Mutual Fund
An I.O.U. that you pay later.
Credit
A specified amount of money that the insured must pay before an insurance company will pay a claim
A "Deductible"
a bank account that pays you a higher interest rate in return for locking your money away for a certain period of time.
"CD" or Certificate of Deposit
Which 2 things a landlord can legally ask you about in a rental application?
a) your employment history
b) your credit history
c) your references
also known as "shares" or "equity") is a type of security that signifies proportionate ownership in the issuing corporation
A Stock