banking
What is an overdraft fee?
A fee banks charge when you withdraw more money than you have in your account.
What is "paying yourself first"?
The practice of setting aside money for savings before paying for your expenses.
What is a stock?
When you buy this, you are purchasing a small piece of a company.
What is paying the full balance by the due date?
The best way to avoid paying interest on a credit card.
What is a W-4 form?
The form an employee fills out to tell an employer how much tax to withhold from their paycheck.
What is the FDIC (Federal Deposit Insurance Corporation)?
This federal agency insures bank deposits up to $250,000.
What is a fixed expense?
A cost, like a rent or car payment, that remains the same from month to month.
What is a Roth IRA?
A type of retirement account where you pay taxes on your contributions now and withdraw the money tax-free in retirement.
What is your payment history?
The most important factor in determining your credit score.
What is Tax Day (or April 15)?
The date by which most Americans must file their federal income tax returns.
What is endorsing a check?
This is the act of signing the back of a check to authorize it to be cashed or deposited.
What is a zero-based budget?
A financial plan that gives every dollar a job, so your income minus your expenses equals zero.
What is risk and reward?
The relationship that states a higher potential reward often comes with a higher chance of loss.
What is an auto loan?
A short-term loan used to purchase a vehicle.
What is gross pay?
Your total earnings before any deductions, like taxes or insurance premiums, are subtracted.
What is a credit union?
A not-for-profit cooperative financial institution, often with better rates than traditional banks.
What are variable costs?
Costs that fluctuate from month to month, such as groceries, gas, or electricity.
What is a dividend?
The money earned on an investment, paid to shareholders by a corporation.
What is your credit report?
This is what a lender would check to assess your ability to repay a loan.
What is net pay?
Your earnings after all deductions have been taken out.
What is that a debit card draws money directly from your account, while a credit card is a form of a loan?
The main difference between a debit card and a credit card
What are taxes?
The calculation to find your net income: gross pay minus these deductions.
What is diversification?
The process of spreading out your investments to reduce risk.
What is a high credit utilization ratio?
Having a high amount of debt relative to your available credit, which can lower your credit score.
What is a W-2 form?
An annual document an employer must send by January 31st that reports an employee's annual wages and the amount of taxes withheld.