Unit 1 Vocab
A system by which goods and services are produced and distributed
What is Economy
Saving money for a purchase and letting the interest work for you rather than against you.
What is a Sinking Fund
A written cash flow plan.
What is a Budget
A yearly fee that's charged by the credit card company for the convenience of the credit card.
What is an Annual Fee
The promotion of a product or service by identifying it with distinct characteristics (usually associated with public perception, quality or effectiveness)
What is Branding
Interest on interest.
What is Compound Interest
interest paid on interest previously earned; credited daily, monthly, quarterly, or semiannually
What is Compound Interest
A summary that shows total income and spending for a given time period.
What is a Cash Flow Statement
Cost of borrowing money on an annual basis, takes into account the interest rate and other related fees on a loam.
What is APR
Refers to the public's ability to recall and recognize a brand by its logo, jingles, packaging, etc.
Brand recognition/awareness
A person or organization that uses a product or service.
What is a Consumer
five hundred dollars in readily available cash to be used only in the event of an emergency; the goal of the First Foundation
What is an Emergency Fund
A copy of each check you write.
What is a Carbon Check
Type of card issued by a bank that allows users to finance a purchase.
What is a credit card
Feeling regret or concern after making a large purchase
What is Buyers Remorse
The granting of a loan and the creation of debt;any form of deferred payment.
What is Credit
percentage paid to a lender for the use of borrowed money ( in debt); percentage earned on invested principal (in investing)
What is Interest Rate
Series of envelopes that are divided into categories (food, entertainment, gas, etc.) and are used to store cash for planned monthly expenses.
What is the Envelope System
A detailed report of an individuals credit history.
What is a credit report
Latin term for "buyer beware"
An obligationof repayment owed by one party (the debtor/borrower) to a second party (the creditor/lender); in most cases this includes repayment of the original loan amount plus interest
What is Debt
the five steps to financial success
What are the Five Foundations
An item that is bought without previous planning or consideration of the long-term effects.
What is an Impulse Purchase
A measure of an individual's credit risk; calculated from a credit report using a standardized formula.
What is a Credit Score
To buy an item with credit; paying over time