Money
Federal reserve
Anything of value that you own is
liabilities
When you decide to no longer work
retirement
Interest calculated on the principal amount
Simple Interest
Insures your money in BANKS up to $250k
FDIC
salary or hourly wage without BEFORE any deductions. (they TOTAL amount that you earn is)
Gross pay
a plan you write down to decide how you will spend your money is
budget
Money placed in BEFORE TAXES are taken out from paycheck
Traditional IRA
When your transactions are covered if you have insufficient funds
overdraft protection
Electronic movement of money from one account to another
EFT: Electronic Funds Transfer
the ability to convert an asset into cash
liquidity
how much money you would have if you sold all of your assets and paid off your debts
net worth
Retirement savings plan sponsored by employer
401(k)
Requires deposit of fixed amount for fixed term (penalties if withdrawn early)
Certificates of deposit
Insures your money in CREDIT UNIONS up to $250k
NCUA
When costs rise and there is less spending this means that there is
inflation
expenses that reduce the amount of taxable income.
deductions
Contributions made with money AFTER TAXES have been taken out
Roth IRA
money available at present time is worth more than same amount in the future is known as
Time Value of Money
Money taken from your paycheck to fund programs like Medicare and Social Security
FICA: Federal Insurance Contribution Act
the percent deducted from gross pay based on the W-4 form
income taxes
higher tax rate depending on income
Graduated income tax
a retirement account that the employer maintains to give you a fixed payout is
Pension
Formula used to estimate number of years required to double your money
Rule of 72
Oversees financial products & services
CFPB: Consumer Financial Protection Bureau