Income
money received weekly, bi-weekly or monthly for work or investments
What is a salary or paycheck?
the acronym PYF which is an important reminder in personal finance
What is "Pay Yourself First"?
the possibility of financial loss or physical harm
What is Risk?
a financial institution that provides banking services and is owned by its members
What is a credit union?
the goods and services that people cannot survive without
What are needs?
the focus for which you pursue an education and a job for your future
What is a career?
the financial institution where your income and earnings from investments should be put for safe keeping
What is a bank or credit union?
interest-earning accounts, FDIC-insured, usually pay a higher interest rate than savings accounts in exchange for a larger deposit (low risk)
What are Money Market Accounts?
a card that allows for immediate electronic transfer of money from one's bank savings or checking account (an "electronic paper check")
What is a debit card?
the money spent on goods and services
What are expenditures or debt?
the portion of one's income that is paid to the government
What are taxes?
the next best alternative given up when making a financial choice
What is the opportunity cost?
represent a partial or fractional ownership of a company; pay higher average returns than most any other investment; value can change daily; meant to gain value over a long period of time (medium - high risk)
What are Stocks?
if yours is good - it will allow you to (1) carry small amounts of cash at all times; (2) establish a good financial history; and, (3) provide you with financial flexibility
What is your Credit?
a record of income and spending, and a plan for managing money
What is a budget?
the total amount of one's income BEFORE any deductions have been taken out (taxes, insurance, Medicare, etc.)
What is Gross income?
the amount of money that you invest to start - before any interest is added
What is the Principal?
this is basically an IOU; it promises a return on your money plus interest when it matures in a length of time; it does not represent ownership in any business, company, or government agency (medium risk)
What is a Bond?
a numerical expression of a person's creditworthiness, based on information reported by creditors
What is a Credit Score?
the monthly expenses that ALWAYS occur - some are the same amount each time and some vary, but they are consistent monthly bills
What are Fixed and Variable Expenses?
another word for "take-home pay"
What is Net income?
three common types of long-term investment account options
What are stocks, mutual funds, and bonds?
a professionally managed investment with money pooled from shareholders (plus interest earned) to buy a collection of stocks or bonds of various corporations; it pays dividends (low - high risk)
What are Mutual Funds?
an alternative to buying a home is to rent one - an alternative to buying a car is to _____________ one
What is Lease or Leasing a car?
the money available each month after all bills have been paid, that can be spent on goods & services that are not essential (not required to survive) - "fun money"
What is Discretionary Income?