1
Adding up your income, then subtracting all of your expenses.
Budget
A credit score is a three-digit number that measures how responsible you are financially.
Credit Score
Having money knowledge as well as the ability to put it to work.
Financial Literacy
You can potentially get a much higher rate of return with investing vs. saving, but you’re usually taking more risk.
Investing
You have spent more money than you had in your account.
Overdraft
Drawn on your personal account, the bank verifies you have sufficient funds to cover it
Certified Check
The money you owe others, such as a credit card company.
Debt
Creating a plan or strategy for reaching your financial goals.
Financial Planning
Provides a death benefit to your beneficiaries when you pass away
Life Insurance
The potential that an investment may lose your money.
Risk
Money added to an account and agree to leave it there for a certain amount of time.
Certificate of
Deposit
How much debt you have relative to your income.
Debt to Income Ratio
All the money you earn before any deductions or taxes are taken out.
Gross Income
An account that blends features of a savings account and a checking accoun
Money Market Account
You earn interest only on the money in the account.
Simple Interest
You earn interest on the money in the account and the interest you earn.
Compound Interest
Money set aside for unplanned or unexpected expenses such as car repair
Emergency Fund
Allows you to set aside money for health care expenses on a tax- advantaged basis.
Health Savings Account
The difference between what you owe and what you own.
Net Worth
You earn interest only on the money in the account.
Simple Interest
Borrowing money with the promise to pay it back plus extra money.
Credit
A government agency that’s responsible for maintaining stability in the banking industry.
Federal Deposit Insurance Corporation
The rise in prices for consumer goods and services over time.
Inflation
The money that hits your bank account, once you take out things like taxes, health insurance, and retirement plan contributions.
Net Income
An account that blends features of a savings account and a checking account.
Money Market Account