Credit
The use of this quick payment type can lead to extreme debt if not managed properly
What is a Credit Card?
A simple account at a bank that earns minimal interest on deposits.
What is a savings account?
Shares of ownership in a company.
What are stocks?
A financial plan that allocates future income towards expenses, savings, and debt repayment.
What is a personal budget?
The amount of income that is subject to tax after deductions.
What is taxable income?
A type of credit that allows the borrower to use the credit repeatedly up to a certain limit.
What is revolving credit?
The cost of borrowing money or the return on investment for deposits into an account.
What is interest?
An investment vehicle made up of a pool of money collected from many investors to purchase securities.
What is a mutual fund?
Costs that do not change regardless of the level of goods or services produced.
What are fixed expenses?
Expenses that can be deducted from gross income to reduce tax liability.
What are tax deductions?
The yearly interest rate charged for borrowing.
What is the APR or Annual Percentage Rate?
Payments made to shareholders from a corporation’s profits.
What are dividends?
A fixed income instrument that represents a loan made by an investor to a borrower.
What is a bond?
Costs that vary in amount and type, depending on the choices you make.
What are variable expenses?
A deduction that reduces the amount of income that is subject to tax.
What is an exemption?
A score that represents the creditworthiness of an individual.
What is a credit rating?
Interest calculated on the initial principal and also on the accumulated interest from previous periods over time.
What is compound interest?
An increase in the value of an asset over time.
What is capital appreciation?
The income remaining after deduction of taxes, other mandatory charges, and expenditures that you can do what you wish with.
What is discretionary income?
A tax imposed on individuals or entities based on their income or profits.
What is income tax?
An asset that a borrower offers to a lender to secure a loan
What is collateral?
The loss of potential gain from other alternatives when one alternative is chosen.
What is opportunity cost?
A corporate action in which a company divides its existing shares into multiple shares.
What is a stock split?
A specific objective to be achieved in relation to finances.
What is a financial goal?
The return of excess tax paid to the taxpayer by the government.
What is a tax refund?