Personal Finance
A term for money set aside for unexpected expenses
What is an emergency fund?
A summary of transactions over a period of time (usually a month)
What is a bank statement?
This is the general increase of prices over time (the decrease in the value of a dollar)
What is inflation?
This type of card spends money from your checking account (money you already have)
What is a debit card?
What IRS stands for
What is the internal revenue service?
According to the 50/30/20 budget rule, this is how much money you should aim to put into savings every month
What is 20% of your income?
50% needs and 30% wants
An account used for everyday spending and withdrawals
What is a checking account?
What ROI stands for
What is return on investment?
This allows you to borrow money to make purchases
What is a credit card?
A tax on someone's earnings
What is income tax?
Ranging from 300-850 this is used to obtain loans, rent an apartment, buy a house, buy a car, etc.
What is a credit score/ FICO score?
An account that earns interest over time
What is a savings account?
This is an economic model of price determination
What is supply and demand?
The cost of borrowing money, usually a percentage
What is an interest rate/ interest on debt?
A tax form showing annual wages and tax withheld
What is a W-2?
What APR stands for
What is annual percentage rate?
This number identifies the financial institution
What is a routing number?
Buying this gives you part ownership in a company
What is a stock?
The maximum you can borrow on a credit line
What is a credit limit?
A tax form for non-employee income, usually used for contract work
What is a 1099 form?
A common retirement savings account offered by many employers
What is a 401k?
A check guaranteed by a bank, drawn from its own funds
What is a cashier's check?
This is the central banking system of the United States and it regulates US Monetary policy and interest rates
What is the Federal Reserve?
Process for people or businesses that can't repay their debts
What is Bankruptcy?
A direct reduction in tax owed
What is a tax credit?