Vocab 1
This is a safe place where you can keep money
Bank
this account is used to pay bills and buy things
Checking account
This is like a password, only 4 digits long
PIN number
When you write a check and do not have enough in your account to cover it
Bouncing a check
These loans are guaranteed by collateral
Secured loan
This is only a set amount.
Limited
spending
A deposit that goes directly into your account automatically
Direct deposit
A card that comes with your checking account and has a PIN number
Debit card
A small plastic card that is issued by a bank or another financial institution
Credit card
This account is used to save your money and earns interest
Savings account
Deposit
This is when you take money out of an account
Withdrawal
This looks at what the borrower puts towards the investment
Capital
An asset in which the lender can take if the borrower fails to repay the loan
Collateral
What are you doing when you use money to save for things
What must you have in order to live (not examples)
Need
This is a record of your checking account transactions
Check register
Measures the borrower's ability to repay a loan by comparing income against recurring debts
Capacity
How the borrower intends to use the money
Conditions
What you do not need in order to live (not examples)
Want
To sign the back of a check
Endorse
A written document that authorizes the transfer of money from a bank account to a person or business
Check
Refers to your credit history, which is the borrower's reputation for repaying debt
An amount of money, usually a percentage of the total payment, paid at the time of the purchase
Down payment