Going into Debt
When you borrow money to buy goods and services with a promise to pay it back later
Credit
The term for setting aside income for a period of time so it can be used later
Savings
The term for the increase in the value of a stock from the time it was bought until the time it was sold.
dividend
The term for the actual amount of the loan
Principal
A wide variety of savings plans that require the saver to deposit his or her funds for a certain period of time. When in this plan the money deposited can not be touched until the agreed upon period of time ends.
CD ( Certificate of Deposit) or a time deposit
The name of the government agency that regulates the stock market.
The SEC ( Securities and Exchange Commission)
Paying back a loan in equal payments over a given period of time
Installments
Company plan that provides retirement income for their workers. Most common example of this is a 401k plan
Pension
the term for a person who owns stocks in a company
stockholder
This term is for the cost of credit expressed in dollars and cents.
Finance Charge
This type of savings account is not taxed and is used as a tax write off while money is put in. Only taxed when you take money out.
IRA ( individual retirement account)
The person who acts as a go between of buyers and sellers of stocks
stock-broker
What are the 3 C's regarding your credit rating? Explain each of the 3.
Capacity to pay= How will you be able to pay credit back...Job, Bank account
Character= Are you trustworthy enough to pay back credit... Are you a convicted criminal? Do you already have a lot of debt?
Collateral= Can the creditor take anything from you if you can't pay...house, car, jewelry
A type of savings account that gives higher interest rates but you must maintain a higher minimum balance.
Money Market Account
giving money to the government with a promise of the government to pay it back later plus interest
Savings Bond