Savings Accounts
this type of bank account is designed to hold money that you don't need for daily expenses and typically earns interest over time.
what is a savings account?
this type of bank account is primarily used for everyday transactions and allows you to write checks.
what is a checking's account?
this financial plan helps individuals manage their income and expenses.
what is a budget?
this process involves setting goals for managing your money and creating a strategy to achieve them.
what is financial planning.
refers to the process of identifying something you want to achieve and establishing measurables objectives and timeframes
what is goal setting?
this term refers to the percentage rate at which interest is earned on a savings account annually.
what is a annual percentage yield (APY)?
this term refers to the fee charged by a bank when you spend more money than you have in your checking account.
what is an over draft fee?
the popular budgeting rule suggest splitting you money into 50% of your check to needs, 30% to wants and 20% into savings
what is the 50/30/20 rule?
this type of account is specifically designed to help people save money for retirement with tax advantages
what is an individual retirement account?
popular method of making goals Specific, Measurable, Achievable, Relevant, and Time bound
what is SMART
this federal insurance protects deposits in savings accounts up to 250,000 per account
what is the federal deposit insurance corporation (FDIC) insurance?
this feature of many checking accounts allows you to avoid overdraft fees by linking to another account for automatic transfers.
what is overdraft protection?
this type of expense remains the same each month such as rent or car payments and is important to account for in a budget.
what is a fixed budget?
this term describes the practice of spreading investments across various assets classes to reduce risk
what is diversification?
this theory suggest that individuals are motivated to achieve goals when they are challenging yet possible
what is goal setting theory?
this type of savings account offers higher interest rates but requires a higher minimum balance and limits withdraws.
what is a money market account (MMA)?
this service allows checking account holders to deposit checks using a smartphone app by taking a photo of the check.
what is mobile check deposit?
this budgeting method involves assigning every dollar a specific purpose ensuring that all income is allocated to expenses and savings.
what is zero based budgeting.
this financial document outlines how an individual assets will be distributed after their death.
what is a will?
this type of goal focuses on long term achievements and often requires significant planning.
what is a strategic goal?
this rule suggest dividing your savings into three categories.
what is the 50/30/20 rule?
this type of checking account offers interest on the balance but typically requires maintaining a higher minimum balance
what is an interest bearing checking account?
the envelope system involves using cash filled envelopes to spending in various categories
what is envelope budgeting system?
this comprehensive approach to financial planning considers all aspects of an individuals financial life.
what is a holistic financial planning?
this Japanese concept involves continuous improvment and setting incremental goals to enhance efficiency over time
what is Kaizen?