Savings & Banking
This form of savings is used to support oneself for 3-6 months during unexpected events.
What is an emergency fund?
This represents your trustworthiness as a borrower on a scale from 300 to 850.
What is a credit score?
This is the primary source of income for the federal government.
What is income tax?
This is the phenomena of money growing over time by reinvesting earnings (AKA earning interest on interest).
What is compound interest?
This is the contract between the insurer and policy holder.
What is the policy?
This type of card directly uses money from your checking account.
What is a debit card?
This type of loan is backed by collateral.
What is a secured loan?
This form is filled out upon being hired by a company in order to allow tax withholdings from future paychecks.
What is the W-4?
This index tracks the performance of the 500 largest US companies.
What is the S&P 500?
This is the formal request submitted by a policyholder to the insurance for coverage of an incident.
What is the claim?
This government program insures up to $250,000 held in a bank account in the United States.
What is FDIC? (Federal Deposit Insurance Corporation)
This is the only way to avoid paying interest on credit card purchases.
What is paying the full statement amount before the end of the grace period?
This type of tax credit can only bring your net tax to $0. It cannot make it a refund.
What is a non-refundable credit?
This investment tool is similar to a mutual fund, but it is traded on a stock exchange.
What is an ETF?
This is the age at which you can no longer be under your parents' health insurance.
What is 26?
Under the Golden Savings Rule, 30% of your income should be used for this spending category.
What is wants?
This number is based on calculations of your family's financial resources and represents ability to pay for college.
What is the Student Aid Index (SAI)?
America uses this tax system that taxes higher levels of income at higher rates.
What is a progressive tax system?
This type of investment account uses taxed contributions, but all growth and withdrawals are tax free.
What is a ROTH account?
This the amount a policyholder must pay out of pocket before the insurance company begins to pay.
What is a deductible?
These unnecessary $35 fees punish debit card users for spending over their checking account balance.
What are overdraft fees?
This method of debt-repayment starts by paying off the smallest debt and working your way up.
What is the debt snowball method?
This tax credit can cover up to $2,500 in qualified educational expenses for the first four years of college education.
What is the American Opportunity Credit (AOC)?
This is the price you pay to use an investment tool, such as a mutual fund or ETF, expressed as a percentage.
What is an expense ratio?
What is co-insurance?