Basic Savings Terms
What is money set aside for future use that is held in easily accessible accounts like savings accounts or CDs?
What is savings?
What is a retirement savings account funded by employee and employer contributions, often pre-tax in the U.S.?
What is a 401(k)?
What is an ownership share in a corporation called?
What are stocks?
What is the benefit or return gained from an investment?
What is a reward?
What federal system requires employers to withhold wages from paychecks to fund old-age, survivors, disability, and health-care insurance?
What is the Federal Insurance Contributions Act (FICA)?
What is the sum of money you initially put into an account or amount owed on a debt before interest?
What is principal?
What type of retirement account allows individuals to set aside earned income in a tax-deferred savings plan and has traditional and Roth types?
What is an Individual Retirement Account (IRA)?
What is a certificate of indebtedness issued by a government or corporation promising to repay borrowed money with interest?
What are bonds?
What term refers to the loss of value of an investment due to market conditions?
What are market losses?
What is the federal system that provides old-age, survivors', disability, and hospital care insurance funded by payroll deductions?
What is the Social Security System?
What type of account is issued by a bank for a fixed period with a penalty for early withdrawal?
What is a certificate of deposit (CD)?
What federally approved, tax-deferred savings program is designed for self-employed people?
What is a Keogh plan?
What type of fund pools money to purchase a variety of stocks, bonds, or money market instruments for diversification and professional management?
What are mutual funds?
What is the chance that interest rates may change while a saver or borrower is locked into a fixed rate?
What is interest rate risk?
What is the portion of wages that has not had taxes withheld before being allocated to a retirement plan?
What is pre-tax?
What is the term for interest earned on both the original amount and the interest previously earned?
What is compound interest?
What is the name of the account established by a business to fund retirement benefits for its workers, which can be defined benefit or defined contribution?
What is a pension fund?
What is the term for bonds issued by the U.S. Treasury when the federal government borrows money?
What are Treasury securities?
What term describes the total cost of credit including interest and transaction fees?
What are finance charges or fees?
What is money or assets given to someone upon another person's death called?
What is inheritance?
What measure describes how quickly a financial instrument can be converted to cash without loss of value?
What is liquidity?
What is a financial contract where an individual makes payments over time and later receives payments for life or a set period?
What is an annuity?
What is the term for real property such as land, houses, and office buildings?
What is real estate?
What term describes proceeds from investments including interest payments, dividends, or capital gains?
What are market gains?
What is a voluntary present of money or valuable asset called?
What are gifts?