Personal Finance Vocabulary
When a business, or person is unable to pay her or his debts
What is bankrupt?
The amount of money a person is paid from their job.
What is income or salary?
What is the periodic profit paid to shareholders called?
What is a dividend?
This allows you to buy goods now and pay for them later.
What is credit?
A plan and record of spending.
What is a budget?
Money that remains after you have paid for regular or needed expenses?
What is discretionary income?
When an investor wants to own a small piece of a larger company, he or she purchases _____ in that company.
What is stock?
The more a person has, the higher their potential income earnings will be.
What is education?
Expenses that are the same amount every time
What is Fixed expenses?
The card you might use to buy goods now and pay for them with money you have in the bank.
What is debit?
The first category after income when creating a budget.
What is savings/pay yourself first?
A safe but long term investment, like a loan to the government that is paid back at a stated rate of interest.
What is a bond?
A number that shows how well a person manages their money, a financial grade.
What is credit score?
The three main types are: income, property and sales.
What are taxes?
Expenses that change from month to month, like groceries or utilities.
What are variable expenses?
An investment fund that is designed to follow an index.
What is an index fund?
A high interest savings account that requires the money be left for a set time period (2, 5 or 10 years).
What is a certificate of deposit, CD?
An investment fund that is bought and sold as shares on the market and traded throughout the day.
What is an ETF?
The five conflict resolution strategies.
What are collaborating, compromising, avoiding, accommodating, competing.
The type of account used to buy into investment funds.
What is a brokerage account?
A fixed amount of money paid on a regular basis to a permanent employee of an organization
What is salary?
The amount the policyholder must pay for expenses before the insurance company pays anything.
What is deductible?
What is foreclosure?
The take home pay a person has each month.
What is net income?
A policy on a home, car or person that helps when there is an emergency.
What is insurance?
When a person is paid by the hour and is only paid for the hours worked.
What are hourly wages?
An investment fund that adjusts over time to get more conservative as it nears maturity.
What is a target date fund?