Unit 1
401k
a retirement plan
Audit
a process where accounts are rechecked for accuracy and completeness
Co-pay
a partial payment for the benefits or service (doctor visit)
Credit Rating
a report that tells you how well you repay your loans
Defaulting on a loan
not repaying a loan as promised
Apr
Annual percent rate for interest paid on a card.
Balance
the existing amount in an account
Co-sign
to add your signature to a loan made by someone else, promising that you will repay if the other person does not
Debit
a transaction that takes money from an account
Donation
money given to charity
APY
Annual Percentage Yield describes interest paid to a savings account or certificate
Benefit
something an employer offers an employee beyond salary (health coverage)
Credit
a transaction that adds to an account
Debit Card
a card that allows an individual to pay for a purchase with money electronically withdrawn from their account (similar effect as a check)
Down payment
a percent of the purchase price of an expensive item that must be paid before a bank issues a loan
Assets
what you own or have paid for
Check
a written order directing a bank to take money from your account and pay someone you have designated on the order
Credit Card
a card that allows an individual to charge the cost of a purchase to a credit account (an instant loan)Credit Limit The amount of money a bank or credit card company is willing to loan you 14/63
Debt
the sum of money or obligations you owe
Employee
someone who is hired and works for someone else
ATM
Automated Teller Machine where and individual can withdraw, deposit, or transfer money within their account
Closing
the final arranging of details for the sale of a house
Credit Limit
the amount of money a bank or credit card company is willing to loan you
Deductible
the amount that the individual must pay before the insurance company pays its share
Employer
someone who hires workers