Vocabulary & Miscellaneous
These are 2 types of bank fees.
What is an NSF, Overdraft, ATM Fee, Monthly Fee, Withdraw fee, check fee, stop payment fee...?
Other answers may be accepted.
This is often referred to as "Take-Home Pay"
What is net pay?
This is a number based on one’s financial history, reflecting credit worthiness.
What is a credit score?
The amount of money the insured must pay before the insurance company will begin to cover expenses.
What is a deductible?
One can claim these on their tax return to reduce their taxable income.
What are deductions?
A ledger or record of money received (income) and spent (expenses) over a specific period of time.
What is a Cash-Flow Record?
These expenses remain the same from one budget period to the next.
What are fixed expenses?
These are two benefits of investing in mutual funds.
What are diversification and professional management of the fund?
The amount paid by the policyholder for coverage under the policy.
What is a premium?
This is issued by an employer to show how much tax was withheld during the tax year
What is a W-2 form?
These are expenses that recur at regular intervals other than the length of the budget period
What are periodic expenses?
This is calculated on the principal plus the interest accumulated over the previous period.
What is compound interest?
These are assets a borrower pledges as security on a loan.
What is collateral?
This type of institution has "share accounts" and "share draft accounts"
What is a Credit Union?
This from tells the employer the amount of tax to withhold from an employee's paycheck.
What is a W-4 form?
This is the cost of credit expressed as a yearly interest rate.
What is APR? (Annual Percentage Rate)
These are two ways in which ‘time is money’.
What are interest and inflation (devaluing of currency) ?
These are the two ways stockholders (shareholders) can realize earnings on their investments.
What are dividends and capitol gains?
dividends = payments a company makes to share profits with its stockholders
capitol gains = profit from sale of a stock.
This type of check is drawn by the bank on itself. Considered “as good as cash”.
What is a cashier's check?
These can include: Paid leave, Health Insurance, Retirement Savings Plan, Life/Disability Insurance and Education Assistance, and more.
What are Employee Benefits OR Non-wage compensations?
If you qualify for one of these, it will directly reduce the amount of tax owed.
What is a tax-credit?
This is what it is called when the total income equals total expenses. (every dollar is accounted for- NOT SPENT - but accounted for)
What is a balanced budget OR zero-based budget?
This is the term for reducing or paying off a debt with regular payments.
(Literally: putting the loan "to death")
What is amortization?
This type of coverage protects against damage to your vehicle caused by non-collision events that are outside of your control. This includes theft, vandalism, glass and windshield damage, fire, accidents with animals, weather, etc.
What is "comprehensive coverage"?
This is a good tax-related reason for keeping thorough and organized financial records. (more than one option)
What is .... to be able to identify sources of income
to prepare tax returns
to keep track of expenses
to be able to support entries on your return