Basic Terms
An estimate of income and expenses for a set period of time
What is a budget
A financial institution that is owned by its members, returning profits to them
What is a debt
The action or expending money with the expectation of achieving a profit
What is investing
A specific objective or target related to the management and utilization of your money and resources
What is a financial goal?
Things desired but not necessary for survival, such as entertainment, luxury items or nonessential services
What is a want
An account designed to hold money not immediately needed for daily expenses
What is a savings account
The ability of a customer to obtain goods or services before payment based on the trust that a payment will be made in the future
What is credit
Shares or equitities that represent ownership in a company
Define stocks
A stash of money set aside specifically to cover unexpected and unplanned expenses or financial setbacks
What is an emergency fund
Things essential for survival, like food, water, shelter and basic clothing
What is a need
Also known as the Fed, is the central bank of the United States
What is the Federal Reserve Bank
A numerical representation of an individuals creditworthiness, typically ranging from 300 to 850 - indicates how likely a person is to repay borrowed money and make payments on time
What is a credit score
The activity of buying and selling, especially on a large scale
Define Business or commerce
When someone takes your name and personal information (like your social security number) and uses it without your permission to do things like open new accounts, use your existing accounts, or obtain medical services.
What is identify theft
A things for which someone is financially responsible, especially a debt or financial obligation.
What is a liability
A physical asset that is a hedge against currency inflation, and role throughout history as a store of value.
What are precious metals (gold , silver)
A detailed report of how an individual has managed and repaid debt overtime
Interest calculated on the initial principal of a deposit or loan, as well as the accumulated interest from previous periods
What is compound interest
What is financial literacy?
property owned by a person or company, regarded as having high value and available to meet debts, commitments, or legacies
What is an asset
Digital form of central bank money
What is a Central bank Digital Currency (CBDC)
Unfair, deceptive, or fraudulent lending practices that exploit borrowers
What is predatory lending
A strategy that mixes a variety of investments within a portfolio in an attempt to reduce portfolio risk
Define Diversification
A comprehensive document that outlines a company's goals, strategies, and financial projections, serving as a roadmap for its operations and future growth.
What is a business plan