Banking
The original amount of money borrowed or invested
What is principal
The total amount of money earned before anything is taken out
What is gross income
The smallest amount you must pay on your credit card each month.
What is minimum payment
What type of loan requires collateral
What is a secured loan
A bank account used for everyday spending and transactions
Amounts taken out of your paycheck for things like taxes, insurance, or retirement.
What are deductions
A line of credit that uses your home as collateral
What is a HELOC
A person or institution that gives you money.
What is a lender
A unique number used to identify a bank in transactions
What is a routing number
A document (form) filled out when you start a job to determine how much tax is taken out of your paycheck.
What is a W4 form
is a loan with fixed payments over a set period of time.
What is installment credit
Shows the true yearly cost of a loan, including fees.
What is APR
Compare APR and interest rate
The interest rate is the cost of borrowing money. APR includes the interest rate plus fees, making it more useful because it shows the total yearly borrowing cost.
A form that shows how much money you earned and how much tax you paid during the year.
What is a W2 form
Allows you to borrow up to a limit and pay it back over time
What is revolving credit
Flexible loan often unsecured
What is a Personal Loan
Explain how compound interest can be both helpful and harmful depending on the situation.
Compound interest is helpful when saving money because your money earns interest on previous interest. It is harmful when borrowing money because debt grows faster if unpaid balances gain interest.
List 4 possible deductions you'll have as an adult
Taxes (federal, state, local), Social Security, Medicare, health insurance, retirement contributions, and possibly union dues or retirement plans like a 401(k).
A mortgage is an example of what kind of credit
What is an installment credit
To __________________ means failing to repay a loan as agreed
What is default