Investing
These represent pieces of ownership of a company.
Stocks
This is a type of bank that is not trying to make a profit--it gives its members high interest and charges them low interest.
An agreement where you are credited with a fixed amount of money for a fixed period of time, usually with interest
Loan
A legal process where a lender repossesses and sells a property due to the borrower's failure to make mortgage payments
Foreclosure
Money set aside for unanticipated expenses or loss of income.
Emergency Fund
When a company combines the funds of many different investors and then invests that money in a diversified portfolio of a POOL of stocks and bonds
Mutual Funds
A simple account that allows you to collect interest to grow deposited funds over time.
Savings Account
The amount of time you have to repay your entire loan
Term
Debt repayment strategy that begins with paying off the smallest of all your loans as quickly as possible. Once that debt is paid, you take the money you were putting toward that payment and roll it onto the next-smallest debt owed.
Snowball Method
The rate at which the price of goods increases and consumer purchasing power decreases over time
Inflation
A strategy of making a variety of investments in order to reduce your exposure to risk is called...
Diversification
This type of bank account is best for everyday transactions.
Checking Account
A loan taken by individuals and businesses to make real estate purchases without paying the entire value of the purchase up front
Mortgage
Describes the status of being behind on one or more loan payments
Delinquency
Not having any money saved, and spending nearly every cent earned every month.
Living paycheck to paycheck
Uncertainty about the effects/implications of an activity with respect to something that humans value, or the possibility of loss
Risk
An automatic electronic deposit of net pay to an employee's designated bank account
Direct Deposit
The smallest amount of a credit card bill that a credit card holder must pay during a billing cycle to remain in good standing with the lender
Minimum Payment
Something valuable that the lender can take as payment if you can't or don't repay your secured loan
Collateral
The amount you owe as the cost of borrowing money
Interest
"Those who understand it earn it, those who don't pay it." This "power" makes your money grow.
Compound Interest
The FDIC now insures deposits up to...
$250,000
A mortgage in which the initial interest rate is normally fixed for a specified period of time after which it is reset periodically, often every month
Adjustable-Rate Mortgage
Long-term failure to repay a loan according to the terms agreed to, which has a substantial negative impact on the borrower's credit score
Default
The seminal album from Brooklyn's original rock-rap trio, The Beastie Boys
Licensed to Ill