Budget
Money received, especially on a regular basis, for work or through investments
What is income?
Wealth in the form of money or other assets owned by a person/organization
What is Capital
The method of dividing your monthly after-tax income into three spending categories: 50% for needs, 30% for wants and 20% for savings or paying off debt
50/30/20 Rule
The amount of money lent or invested on which interest is paid
What is principal
The most common bank type in the U.S. Accepts deposits, offers checking and savings account services, and makes loans
What is commercial bank
A court order directing that money or property of a third party (usually wages paid by an employer) be seized to satisfy a debt owed
What is Garnishment?
Money set aside for future use and not spent immediately.
What is Savings
Example of this include:
What is investing
Interest paid one time a year at the end of the year on the average balance in a savings account
What is simple interest
A nonprofit-making money cooperative whose members can borrow from pooled deposits at low interest rates
What is a Credit Union
The amount of money you have left over after taxes and other deductions are taken out of your gross income (also called take-home pay)
What is Net Income
Putting capital to use today in order to increase its value over time
What is investing
Describes when a market experiences periods of unpredictable, and sometimes sharp, price movements.
What is volatility
The portion of a loan that is charged as interest to the borrower (usually a %)
What is Interest Rates
Middleman who connects buyers and sellers to complete a transaction for stock shares, bonds, etc.
What is a brokerage house
The practice of comparing the price of products or services from different vendors before buying
What is comparison shopping
Any kind of asset that families pass down to their children or grandchildren, whether in the form of cash, investment funds, stocks and bonds, properties or even entire companies
What is generational wealth
Performance measure used to evaluate the efficiency or profitability of an investment
What is Return on Investment (ROI)
Being insured up to $250,000 by the federal government (FDIC) Federal Deposit Insurance Corporation
What is Deposit Insurance
Has numerous agencies assigned to regulate and oversee financial institutions and financial markets in the United States
What is the U.S. Government
Calculated by Dividing the price of the product by the weight/volume of the product.
What is Unit Price
The rate at which prices for goods and services rise.
What is Inflation
The ease with which an asset, or security, can be converted into ready cash without affecting its market price.
What is liquidity
Interest paid on the principal AND on previously earned interest, assuming that the interest is left in the account
What is Compound Interest
This institution dates back to the 1800s when they were created to help working-class families earn interest on their savings. Owned by the people who deposit money there (unlike a traditional bank that's owned by shareholders).
What is a Mutual Savings Banks (MSB)