Basic Accounts I
A type of Bank Account that is set up for accumulating money. Withdrawals are only made in-person or by ATM. It may pay interest, but usually requires a minimum balance
Savings Account
An account in which a fixed amount is deposited from your Gross Pay regularly, usually to pay certain expenses, such as Health Care costs, on a Pre-Tax basis
Flexible Spending Account (FSA)
This is what a lender does when they take back your car due to non-payment...
Repossess (Repo)
Paying loans, bills and credit cards on time is the most significant factor for determining this
Credit Score
The total amount of money you earn
Gross Pay
Once you deposit money into this account, it is locked in for a specified period. It earns higher interest than most basic accounts, but if you withdraw the money before the end of the time period, you will be charged a stiff penalty.
Certificate of Deposit (CD)
The money you earn by allowing the bank to "use" your money or what you are charged when you borrow - a.k.a. The "Cost" of money
Interest
This occurs when you don't pay on a loan...
Default
Experian, Equifax, Transunion
These are a few of the organizations that keep on file the credit records of consumers
What are the credit reporting agencies
The amount you "take home" after taxes and other deductions
Net Pay
An account set up for paying bills, though you may be charged for exceeding a certain number of transactions on some accounts. Basic types usually do not pay interest, and if you exceed your balance...Watch Out!
Checking Account
A deadline for settling a financial agreement, or when you "earn" your interest for keeping your money in a CD account
Maturity
This occurs when a bank takes back your house due to non-payment...
Foreclosure
True or False: You should always pay only the minimum amount due on a credit card.
False. Always pay more to reduce the interest paid.
The percentages you can expect to have deducted from your pay for Medicare & Social Security
These two together represent the Federal Insurance Contribution Act or FICA which you may see on your paycheck
1.45% Medicare
6.2% Social Security
An account that has features of both Savings and Checking accounts, but may limit the number of transactions allowed by charging fees; it usually allows higher interest earned, by tying the rate paid "to the market"
Money Market Account
This is who should you always pay first after earning a paycheck?
Yourself! (savings account)
When a business, or person is unable to pay her or his debts
Bankruptcy
The number of years a missed payment and a bankruptcy stays on your credit report
7 years for a missed payment
up to 10 years for a bankruptcy
Having enough money saved to be able to withstand crises and emergencies.
Financial Security
A bank account that has a high penalty for withdrawal of funds before age 59 1/2; A fixed contribution is deposited every month, which can sometimes be Pre-Tax
Individual Retirement Account (IRA)
Build up your Credit Score by starting this type of account at your bank, usually started with a CD account that you can't touch, then borrowing that same amount "against" the CD
Secured Loan
After your receive your credit card bill, you have this amount of time to pay the bill before interest or late fees are charged.
Grace Period (usually 10 days)
For having this, you may be denied for an apartment, an auto loan, low interest rates for credit, and even a job?
Bad Credit
Planning your Income & Expenses so that you know what to expect, and what actions to take...
The process for a business is the same, and it can be summarized by the Basic Business Equation,
Revenue -minus- Costs = Profit/Loss
Budgeting