Banking Basics
This type of card is linked directly to your checking account for purchases.
What is a Debit Card?
This document summarizes the costs, fees, and interest rates of a credit card.
What is a Schumer Box?
A specific type of loan used to purchase a home.
What is a Mortgage?
The original amount of money borrowed in a loan
What is Principal?
This budgeting rule allocates 50% to needs, 30% wants, and 20% savings
What is the 50/30/20 Rule?
This insurance protects your bank deposits up to $250,000.
What is FDIC Insurance?
The time period where you aren't charged interest if you pay your balance in full.
What is a Grace Period?
A loan where the interest rate stays the same for the entire life of the loan.
What is a Fixed-Rate Loan?
The process of paying off debt in regular installments over time.
What is Amortization?
The strategy of putting money into savings as soon as you receive your paycheck
What is Pay Yourself First?
This type of savings account restricts access to funds for a set period of time.
What is a Certificate of Deposit (CD)?
This type of card is preloaded with cash and does not link to a bank account.
What is a Prepaid Debit Card?
Debt that is backed by collateral, such as a car or a house
What is Secured Debt?
The cost of borrowing money, usually expressed as a percentage.
What is an Interest Rate?
Interest earned on both the principal and the interest already accumulated.
What is Compound Interest?
This monthly fee is charged by some banks just to keep an account open.
What is a Maintenance Fee?
The maximum amount of money you are allowed to charge to your credit card.
What is a Credit Limit?
A mortgage where the interest rate can change based on market conditions.
What is an Adjustable-Rate Mortgage?
This person signs a loan with you and is responsible if you fail to pay
What is a Cosigner?
This financial metric is calculated by subtracting your liabilities from your assets.
What is Net Worth?
This type of savings account typically requires a high minimum balance but offers higher interest.
What is a Money Market Account?
This is the smallest amount you can pay to keep your card in good standing.
What is a Minimum Payment?
A short-term, high-interest loan that must be repaid by your next paycheck
What is a Payday Loan?
This term describes the length of time you have to repay a loan.
What is Loan Term?
Doing this will result in lower monthly payments but higher total interest over time.
What is increasing the loan term?